Asked by Sierra Summers on May 01, 2024
Verified
Total surplus shows the total benefit to society from production and consumption of a good.
Total Surplus
The sum of consumer surplus and producer surplus, representing the total net benefits to society from the production and consumption of goods or services.
- Understand the concept of total surplus and its components: consumer surplus and producer surplus.
Verified Answer
RK
Ritika KauraMay 04, 2024
Final Answer :
True
Explanation :
Total surplus is the sum of consumer surplus and producer surplus, which represents the net benefit gained by consumers and producers from the production and consumption of a good. Therefore, it shows the total benefit to society.
Learning Objectives
- Understand the concept of total surplus and its components: consumer surplus and producer surplus.