Allocative efficiency occurs when
A) we cannot produce more of any one good without giving up some other good.
B) marginal benefit exceeds marginal cost.
C) opportunity costs are decreasing.
D) we cannot produce more of any good without giving up some other good that we value more highly.

Question

Quizplus · Accepted Answer

Allocative efficiency is achieved when resources are distributed in a way that maximizes the total benefit to society, meaning we cannot produce more of any good without sacrificing another good that is valued more highly.

Allocative Efficiency Occurs When