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

Question

Quizplus · Accepted Answer

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

An Economy Will Be Allocatively Efficient If