What term describes a scenario where the total benefit equals the total cost?

The term that describes a scenario where the total benefit equals the total cost is "Equilibrium." In economics, equilibrium refers to a state where supply and demand balance each other, resulting in stable prices. When total benefits equal total costs, it indicates that resources are being allocated efficiently and there is no incentive for change since any action taken would not improve overall satisfaction or utility.

This concept is fundamental in understanding market behavior, as it signifies that the economic resources are being used optimally—the outputs produced are just enough to meet the needs and wants of consumers, without resulting in surplus or shortage. It reflects a point where the marginal benefit of an action is equal to the marginal cost, leading to an optimal allocation of resources.

Other terms, while related to various economic situations, do not specifically describe the balance of total benefits and costs in the same way. Optimization, for instance, refers to the process of making the best or most effective use of resources, which could include a scenario where benefits exceed costs. Scarcity represents the limited nature of resources, and welfare maximization implies a situation where resources are allocated to achieve the highest overall benefit, but does not necessarily mean total benefits equal total costs.