Exhibit 7-2 -The Sum of Producer and Consumer Surplus Is Maximized When

Multiple Choice

Exhibit 7-2
-The sum of producer and consumer surplus is maximized when

A) the difference between marginal benefit and marginal cost is at its maximum.
B) producers produce at the point where marginal cost is equal to zero.
C) equity is achieved.
D) consumers buy to the point that marginal benefit is equal to zero.
E) marginal benefit and marginal cost are equal.