Resource allocation is efficient from a societal standpoint if the price of a good is equal to the _____ cost of production.

Question

Quizplus · Accepted Answer

The price of a good is considered to be efficient from a societal standpoint when it equals the marginal cost of production. This is because at this point, the cost of producing one additional unit of the good equals the price that consumers are willing to pay for it, indicating that resources are being used in a way that maximizes societal welfare.

Resource Allocation Is Efficient from a Societal Standpoint If the Price