An economy will be allocatively efficient if
A)least-cost production techniques are employed by all firms.
B)the marginal costs of all firms in an industry are equal.
C)marginal cost equals price for all goods.
D)the economy's resources are fully employed.
E)imperfectly competitive markets are regulated.

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when the price of a good equals the marginal cost of production, ensuring that resources are distributed in a way that maximizes total societal welfare.

An Economy Will Be Allocatively Efficient If