A market is said to be allocatively efficient when the marginal cost of producing each good equals the marginal benefit that consumers derive from that good

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when resources are allocated in a way that maximizes the net benefit to society, meaning that the marginal benefit to consumers equals the marginal cost of production. This ensures that resources are not being wasted and that the economy is producing goods at the optimal level of output.

A Market Is Said to Be Allocatively Efficient When the Marginal