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

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 one good without sacrificing a more valued good.

When We Cannot Produce More of Any Good Without Giving