Which tools allow economists to determine if the allocation of resources determined by free markets is desirable?

a. the equilibrium price and quantity

b. profits and costs to firms

c. consumer and producer surplus

d. incomes of and prices paid by buyers?

Letter C is the correct answer.

Explanation:

Consumer and producer surplus refers to the difference among the highest price that a consumer is willing to pay and the actual market price of that good.  So, the producer surplus refers to the difference between the market price and the lowest price the producer wants to accept; this tool is very helpful when determining if the allocation of resources is desirable.

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