FIGURE 12- 1 Consider three firms,A,B and C,all producing kilos of potatoes (per year)in a perfectly competitive market.The diagrams below show marginal cost curves for each of the three firms.

-Allocative efficiency is a property of the behaviour of

Question

FIGURE 12- 1 Consider three firms,A,B and C,all producing kilos of potatoes (per year)in a perfectly competitive market.The diagrams below show marginal cost curves for each of the three firms.
 
-Allocative efficiency is a property of the behaviour of

Quizplus · Accepted Answer

Allocative efficiency refers to a state of the overall economy where resources are distributed in a way that maximizes total societal welfare, meaning goods and services are produced according to consumer preferences.

FIGURE 12- 1 Consider Three Firms,A,B and C,all Producing Kilos