When a firm produces the quantity of output where price equals marginal cost, it has achieved resource allocative efficiency.

Name: When a firm produces the quantity of output where price equals marginal cost, it has achieved resource allocative efficiency.
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Resource allocative efficiency occurs when a firm produces at a level where the price of the good equals the marginal cost of production, indicating that resources are being allocated in a way that maximizes the net benefits to society.

When a Firm Produces the Quantity of Output Where Price