What is social surplus?
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MSC- 14) If resources are allocated efficiently, A) consumer surplus exceeds producer surplus. B) marginal social cost is minimized. C) producer surplus exceeds consumer surplus. P) the sum of consumer surplus and producer surplus is maximized, E) marginal social benefit is maximized.
11) It is efficient to produce an additional shirt if the A) producer surplus from the additional shirt exceeds its consumer surplus. B) marginal social benefit from producing the shirt exceeds zero. C) consumer surplus from the additional shirt exceeds its producer surplus. D) marginal social benefit of producing the shirt equals zero. E) marginal social benefit from producing the shirt is greater than the marginal social cost of producing it.
Which of the following best defines consumer surplus?
a. The producer surplus plus the social surplus
b. The social surplus minus producer surplus
c. The amount a seller is paid for a good minus the seller's actual cost
d. The difference between an item's production cost and the amount paid by consumers
Ā