Asked by Joshua Gagen on May 06, 2024
Verified
When there is a positive amount of total surplus in a market,it means that the cost of producing the good is zero.
Total Surplus
The total net gain to society from creating and using goods and services, shown by adding together consumer and producer surplus.
- Perceive the concept of total surplus including detailed insights into consumer surplus and producer surplus.
Verified Answer
DC
domenique caponeMay 08, 2024
Final Answer :
False
Explanation :
The total surplus in a market is the difference between the total value that consumers place on a good and the total cost of producing it. A positive total surplus indicates that the value consumers place on the good is greater than its cost of production, but it does not necessarily mean that the cost of producing the good is zero.
Learning Objectives
- Perceive the concept of total surplus including detailed insights into consumer surplus and producer surplus.
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