Social economic efficiency means that the market is achieving

Question

Quizplus · Accepted Answer

Social economic efficiency means that the market is achieving both productive efficiency (producing goods and services at the lowest cost possible) and allocative efficiency (producing the goods and services that consumers value the most). Maximum consumer surplus may be achieved under allocative efficiency. Therefore, options A and B are correct, and option C is only a potential outcome of social economic efficiency.

Social Economic Efficiency Means That the Market Is Achieving