When economic eﬃciency is attained, it implies all of the following, except
A) per-unit cost of output produced is at minimum.
B) allocative eﬃciency is achieved.
C) total consumer and producer surplus is at a maximum.
D) the gap between marginal beneﬁts and marginal costs of production is at maximum.

Question

Quizplus · Accepted Answer

Economic efficiency is attained when the goods and services are produced at the lowest cost possible (per-unit cost is at a minimum), the available resources are allocated to produce the goods and services that most satisfy consumers (allocative efficiency), and the total surplus (consumer and producer surplus) is maximized. However, the gap between marginal benefits and marginal costs of production is not necessarily at a maximum in a state of economic efficiency.

When Economic Eﬃciency Is Attained, It Implies All of the Following