With respect to welfare economics, why is the equilibrium price of a product considered to be the best price?
a) It minimizes costs and maximizes profits of sellers.
b) It minimizes the level of welfare payments to those who no longer live below the poverty line.
c) It maximizes total revenue to firms and total utility to buyers.
d) It maximizes the total welfare of buyers and sellers.
Ans: d) It maximizes the total welfare of buyers and sellers.
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