Answer to Question #223453 in Microeconomics for Raksha

Question

In order to maximize surplus in a market, which of the following must be true?

All costs and benefits to society are internalized.

All goods are common resources.

Quantity supplied is greater than quantity demanded.

Marginal private benefit equals marginal private cost.

None of the above

Answer 1

Quantity supplied is greater than quantity demanded.

When the quantity supplied is more, the market tends to stabilize the product availability sector hence maximizing surplus.