If Marginal Benefit Is Equal to Marginal Cost, Then the

question 60

Multiple Choice

If marginal benefit is equal to marginal cost, then the

• A) producer surplus is equal to the consumer surplus.
• B) deadweight loss is more than zero but less than its maximum.
• C) market has squeezed out total surplus so that it equals zero.
• D) sum of producer surplus and consumer surplus is as large as possible.
• E) sum of producer surplus and consumer surplus equals zero.

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