Efficient allocation of output requires that:
A)each unit of output will go to the person who will get the highest marginal benefit from it.
B)each unit of output will be produced at minimum fixed cost.
C)output will be distributed evenly across consumers and producers.
D)consumers will each pay a price equal to the marginal benefit received from the good.

Question

Quizplus · Accepted Answer

Efficiency in the allocation of output occurs when each unit of output goes to the person who has the highest marginal benefit from it. This means that the allocation of resources is optimized, and no other person could benefit more from that particular unit of output. Choices B, C, and D do not necessarily ensure efficient allocation of resources.

Efficient Allocation of Output Requires That