With allocative efficiency,for each good produced,
A)marginal benefit equals marginal cost.
B)marginal benefit is at its maximum.
C)marginal benefit exceeds marginal cost by as much as possible.
D)marginal cost exceeds marginal benefit by as much as possible.
E)marginal cost is at its minimum.

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when resources are allocated to produce the combination of goods and services that maximizes society's net benefit. This is achieved when marginal benefit equals marginal cost, indicating that resources are being used in the most efficient way possible. Therefore, choice A is the correct answer as it accurately describes allocative efficiency.

With Allocative Efficiency,for Each Good Produced