Allocative efficiency occurs when: A) we can not produce more of any good without giving up...
Allocative efficiency occurs when:
A) we can not produce more of any good without giving up some other good that we value.
B) We can not produce more of any one good without giving up some other good
C) Marginal benefit exceeds marginal cost
which one is the right answer???
Homework Answers
Question: Allocative efficiency occurs when:
Answer:- OPTION "C" Marginal benefit exceeds marginal cost
Explanation:-
Allocative efficiency occurs where price = marginal cost (MC)
The Allocative efficiency occurs when consumers pay a market price that reflects the private marginal cost of production. The condition for allocative efficiency for a firm is to produce an output where marginal cost(MC), just equals price(P).
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