Question

A perfectly competitive market in equilibrium is allocatively efficient and it maximizes

a).total consumer surplus.
b).total producer surplus.
c).the sum of total consumer surplus and total producer surplus
d).total revenue
e).total external benefits.

Answer 1

Answer:

d. total revenue

Explanation:

A market in equilibrium is a good thing. By process of elimination, a surplus of any form is bad (A,B,C is out) and there's no mention of external benefits in the microecons syllabus so dont pick something you havent heard of.