Question

Under the long-run equilibrium, for perfectly competitive markets without any government intervention,:

Select one:
a.
consumer surplus is maximized.

b.
producer surplus is maximized.

c.
producer surplus is greater than consumer surplus.

d.
consumer surplus is greater than producer surplus.

e.
the sum of consumer and producer surplus is maximized.

Answer 1

e. the sum of consumer and producer surplus is maximized