Allocative efficiency is achieved when firms produce goods and services
A)at the lowest possible cost.
B)that consumers value most.
C)at the lowest opportunity cost.
D)at a marginal cost of zero.

Question

Quizplus · Accepted Answer

Allocative efficiency is the production of goods and services that consumers value most. It occurs when suppliers produce goods and services at a price that reflects the marginal cost of production, meaning that resources are being used in the most efficient way possible.

Allocative Efficiency Is Achieved When Firms Produce Goods and Services