An allocation of goods and inputs in an economy is economically efficient if:
A)that allocation minimizes costs.
B)that allocation maximizes profits.
C)there exists an alternative, feasible allocation of goods and inputs that would make all consumers better off as compared with the initial allocation.
D)there does not exist an alternative, feasible allocation of goods and inputs that would make all consumers better off as compared with the initial allocation.

Question

Quizplus · Accepted Answer

Economic efficiency is achieved when it is impossible to improve the situation of one party without making another party worse off. Therefore, if there does not exist an alternative allocation that can make all consumers better off, the current allocation is considered economically efficient.

An Allocation of Goods and Inputs in an Economy Is