Use the ideas of consumer surplus and producer surplus to explain why economists say competitive markets are efficient. Why are below- or above-equilibrium levels of output inefficient, according to these two sets of ideas?© BrainMass Inc. brainmass.com October 10, 2019, 12:23 am ad1c9bdddf
When the consumers' utility exceeds the price paid, consumer surplus is generated.
when producers receive a price greater than marginal cost, ...
Solution explains Consumer surplus and Producer surplus and also why competitive markets are efficient.