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

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when the marginal benefit of consuming a good is equal to the marginal cost of producing it, indicating that resources are being used in a way that maximizes the net benefits to society.

Resource Use Is Allocatively Efficient When Marginal Benefit Is