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Why do competitive markets maximise the sum of producer and consumer surplus? - Nick - 12-14-2012 07:11 AM
And how would you use this analysis to explain what would happen if a social planner intervenes in a market in which supply and demand are determining equilibrium price and quantity.
Thanks
- Anjaree - 12-14-2012 07:19 AM
Only in the long run when price is equal to the minimum long run average total cost.