To achieve allocative efficiency, firms
A)strive to minimize fixed costs
B)strive to maximize profits
C)produce at their minimum long-run average cost
D)produce at their minimum long-run marginal cost
E)produce the output consumers want most

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when firms produce the quantity of goods and services that consumers value most, aligning production with consumer preferences.

To Achieve Allocative Efficiency, Firms