Ideally, a Market Should Maximize

question 97

Multiple Choice

Ideally, a market should maximize:

• A) consumer surplus.
• B) producer surplus.
• C) consumer surplus plus producer surplus.
• D) social surplus.

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability of a data set around its mean.

Frequency Distribution

A statistical representation showing the number of instances in which a variable takes each of its possible values.

Linear Regression Line

A line that approximates the points on a scatterplot which can be used to show a trend and make predictions; also called a line of best fit or least squares line.

Scatterplot

A graph that shows the relationship of bivariate data using points on the coordinate grid.