Question Completion Status: Moving to another question will save this response. >> Question 11 2 points Save Answer Buyers and sellers receive benefits from taking part in the market. Under certain conditions, one of which is that there are no externalities, the competitive markets generate maximum total welfare of buyers and sellers. Total welfare of buyers and sellers equals total benefits minus total costs. Total welfare of buyers and sellers equals the sum of consumer surplus and producer surplus. The welfare of buyers is measured by consumer surplus which is a monetary measure of the net benefit enjoyed by them from being able to purchase a product at the going market price. The welfare of the sellers is measured by producer surplus, which is the difference between the amount that a seller actually receives from selling a good in the marketplace and the minimum amount the seller must receive in order to be willing to supply the good in the marketplace. In this paragraph the phrase 'the minimum amount the seller must receive in order to be willing to supply the good in the marketplace' can be replaced by The seller's costs the seller's profits the seller's willingness to pay welfare economics, the branch of economics that studies how the allocation of resources affects economic well-being. the seller's net benefits Moving to another question will save this response.