When we cannot produce more of any good without giving up some other good that we value more highly, we have achieved
A) production.
B) equity.
C) the production point where the marginal benefit exceeds the marginal cost by as much as possible.
D) allocative efficiency.

Question

Quizplus · Accepted Answer

When we cannot produce more of any good without giving up some other good that we value more highly, we have achieved allocative efficiency, which is the production point where the marginal benefit exceeds the marginal cost by as much as possible. Thus, the correct answer is D.

When We Cannot Produce More of Any Good Without Giving