Allocative efficiency means that
A)the product is produced at the lowest unit-cost possible.
B)society's scarce resources are used to produce products that align with consumer preferences.
C)the product is sold at a price equal to the average cost of producing it.
D)the marginal benefit of the product exceeds its marginal cost.

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when society's scarce resources are used to produce the goods and services that best match consumer preferences, ensuring that the allocation of resources reflects the desires and needs of consumers.

Allocative Efficiency Means That