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 March 4, 2021, 9:59 pm 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.