Suppose that society cared only about the welfare of consumers so that it wanted

Question

Suppose that society cared only about the welfare of consumers so that it wanted to maximize consumer surplus. The government cannot force firms to produce more than the competitive level Does competition maximize consumer surplus? Why? Competition O A. maximizes consumer surplus by increasing equity, 0 B. maximizes equity, but not necessarily consumer surplus. ° C. maximizes consumer surplus with minimum average cost pricing. O D. maximizes efficiency, but not necessarily consumer surplus. OE.maximizes consumer surplus, but is not Pareto efficient.

Explanation / Answer

Option d.

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