Maximizing social benefit is maximizing consumer surplus. Indicate wh

Maximizing social benefit is maximizing consumer surplus.

Indicate whether the statement is true or false

ANSWER

F Consumer surplus plus producer surplus is a better representation of welfare. Producer surplus is welfare also, and it should be remembered that many who receive producer surplus are retirees and other shareholders who depend on income from the shares. This is a hard question because some argue that only consumer surplus should be considered as welfare but that overlooks the positive value of producer surplus..