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

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when the marginal benefit of consuming a good equals the marginal cost of producing it, ensuring resources are allocated in the most efficient way.

Resource Use Is Allocatively Efficient When Marginal Benefit Is