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

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when resources are distributed in a way that the production of one good cannot increase without decreasing the production of another good, indicating that resources are being used in the most efficient way to meet the desires of consumers.

When We Cannot Produce More of Any Good Without Giving