Resource use is allocatively efficient when
A) we produce the goods with the highest opportunity cost.
B) we cannot produce more goods and services.
C) we produce the goods with the lowest opportunity cost.
D) we produce the amount of the different goods we value most highly.

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when resources are distributed in a way that maximizes the total benefit to society, meaning producing the combination of goods and services that are most valued by consumers.

Resource Use Is Allocatively Efficient When