Allocative efficiency occurs when
A) we cannot produce more of any good without giving up some other good that we value more highly.
B) we cannot produce more of any one good without giving up some other good.
C) marginal benefit exceeds marginal cost.
D) opportunity costs are decreasing.

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 any good without sacrificing a more highly valued alternative.

Allocative Efficiency Occurs When