When goods are allocated in a way that creates the largest economic surplus:
A)output is evenly allocated across firms.
B)production is minimized.
C)efficient allocation has been achieved.
D)the marginal benefit of the last unit bought is the maximum marginal benefit.

Question

Quizplus · Accepted Answer

When goods are allocated in a way that creates the largest economic surplus, it means that resources are being used efficiently and the allocation is optimal. This occurs when the marginal benefit of the last unit purchased is equal to the marginal cost of producing it. Therefore, option C, efficient allocation has been achieved, is the correct answer.

When Goods Are Allocated in a Way That Creates the Largest