In a Perfectly Competitive Market, If Supply and Demand Fully

Multiple Choice

In a perfectly competitive market, if supply and demand fully reflect all of the costs and benefits associated with production and consumption, then total economic surplus is maximized when:

A) price controls keep prices low enough that most consumers can purchase the item.
B) consumer surplus and producer surplus are equal.
C) consumer surplus is greater than producer surplus.
D) the market is in equilibrium.