Resource use is allocatively efficient when marginal benefit is
A)less than marginal cost.
B)greater than marginal cost.
C)equal to marginal cost.
D)at its maximum value.

Name: Resource use is allocatively efficient when marginal benefit is A)less than marginal cost. B)greater than marginal cost. C)equal to marginal cost. D)at its maximum value.
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Question

Quizplus · Accepted Answer

Allocative efficiency occurs when the marginal benefit equals the marginal cost, ensuring resources are used where they are most valued.

Resource Use Is Allocatively Efficient When Marginal Benefit Is