Allocative efficiency occurs when
A) production is allocated equally among all citizens.
B) people who want a product the most get it.
C) goods are produced at the lowest possible cost.
D) resources are equally allocated between the private and public sectors of the economy.

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when resources are allocated in a way that meets consumer demand and produces the mix of goods and services that best satisfies society's preferences. This means that the goods are produced for those who value them the most, creating a situation where consumer welfare is maximized.

Allocative Efficiency Occurs When