Which of the following statements is true concerning economic efficiency?
A)Equilibriums that achieve economic efficiency generate maximum net benefit possible from a given set of resources.
B)Equilibriums that achieve economic efficiency generate maximum net profit possible from a given set of resources.
C)Equilibriums that achieve economic efficiency generate minimum marginal cost possible from a given set of resources.
D)Equilibriums that achieve economic efficiency generate maximum marginal benefit possible from a given set of resources.

Question

Quizplus · Accepted Answer

Economic efficiency is achieved when an equilibrium is reached where the marginal benefit equals the marginal cost. This generates maximum net benefit possible from a given set of resources, as it ensures that resources are allocated in a way that generates the greatest overall benefit for society. Therefore, option A is the correct answer. The other choices are incorrect because they either refer to profit rather than benefit (option B) or focus on minimizing costs or maximizing benefits at the margin rather than achieving overall economic efficiency (options C and D).

Which of the Following Statements Is True Concerning Economic Efficiency