If marginal benefit is equal to marginal cost, then the
A) producer surplus is equal to the consumer surplus.
B) sum of producer surplus and consumer surplus is as large as possible.
C) sum of producer surplus and consumer surplus equals zero.
D) market has squeezed out total surplus so that it equals zero.
E) deadweight loss is more than zero but less than its maximum.
B
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What will be an ideal response?
A subsidy is
A) the revenue received from the government to produce a good or service by a public authority. B) a voucher received by the government from producers of goods and services. C) a payment that the government makes to private producers of goods and services. D) a tax imposed on the producers of certain goods or services. E) a tax imposed on the consumers of certain goods or services.