At the Output Where the Combined Amounts of Consumer and Producer

question 1

Multiple Choice

At the output where the combined amounts of consumer and producer surplus are largest,

• A)the areas of consumer and producer surplus necessarily are equal.
• B)the maximum willingness to pay for the last unit of output equals the minimum acceptable price of that unit of output.
• C)consumer surplus exceeds producer surplus by the greatest amount.
• D)marginal benefit exceeds marginal cost by the greatest amount.

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