Allocative efficienty exist when firms produce the output most preferred byconsumers.

Name: Allocative efficienty exist when firms produce the output most preferred byconsumers.
Brand: Quizplus
Rating: 4.9 (61 reviews)

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when the production of goods and services by firms corresponds to the preferences and desires of consumers. Therefore, it is true that firms produce the output most preferred by consumers in an allocatively efficient market.

Allocative Efficienty Exist When Firms Produce the Output Most Preferred