If the allocation of resources is efficient, then a market economy will maximize the difference between total utility and total cost.

Question

Quizplus · Accepted Answer

An efficient allocation of resources in a market economy means that resources are being allocated to their most valuable uses, resulting in a maximization of total utility (satisfaction) and a minimization of total cost. This is the foundation of the concept of economic efficiency, which is a key goal of a market economy.

If the Allocation of Resources Is Efficient, Then a Market