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If there is a market outcome in which the marginal benefit to consumers of the last...

If there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal​ cost, then A. maximum deadweight loss occurs. B. profits are maximized. C. allocative efficiency is achieved. D. costs are minimized. ​Also, A. deadweight loss is less than zero. B. consumer surplus equals producer surplus. C. quantity demanded is greater than quantity supplied. D. total economic surplus is maximized.

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Answer #1

"C"

Allocative efficiency is achieved in the market and

"D"

Total economic surplus is maximised.

when the marginal cost of the good is equal to the price of the goods, there is allocative efficiency in the market and at that point the producer and the consumer surplus in the market is equal, making the maximum total surplus.  

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