If an allocation of resources is efficient, then

A) consumer surplus is maximized.
B) producer surplus is maximized.
C) all potential gains from trade among buyers are sellers are being realized.
D) the allocation achieves equality as well.

Gains From Trade

The benefits that parties obtain from engaging in voluntary trading, often leading to an increase in overall welfare and efficiencies.

Consumer Surplus

The mismatch between the aggregate amount consumers intend and can afford to pay for a product or service and the aggregate amount they really pay.

Producer Surplus

The difference between the amount a producer is willing to accept for a good versus what they actually receive in the market.