Allocative efficiency occurs whenever
A)consumer surplus is maximized.
B)it is impossible to produce a net benefit for society by changing the combination of goods and services produced.
C)firms have maximized their profits.
D)it is impossible to make someone in society better off without making someone else worse off.

Question

Quizplus · Accepted Answer

Allocative efficiency is achieved when resources are distributed in a way that maximizes the net benefit to society, meaning no reallocation can improve overall welfare.

Allocative Efficiency Occurs Whenever