Total Surplus Is Equal to

question 51

Multiple Choice

Total surplus is equal to

• A)value to buyers - profit to sellers.
• B)value to buyers - cost to sellers.
• C)consumer surplus x producer surplus.
• D)(consumer surplus + producer surplus)x equilibrium quantity.

---

Definitions:

No-Arbitrage Condition

A principle asserting that equivalent assets or combinations of assets should have the same price to prevent the possibility of risk-free profit through arbitrage.

Well-Diversified Portfolios

Investment portfolios that are spread across various assets to minimize exposure to any single asset or risk.

Arbitrage Opportunities

Situations in which it is possible to simultaneously buy and sell an asset or assets to profit from a difference in prices across different markets or formats without risk.