Which of the following describes a situation in which every good or service is produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing it?
A)productive efficiency
B)allocative efficiency
C)marginal efficiency
D)profit maximization

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when resources are allocated in a way that produces the quantity of each good or service where the marginal benefit to society is equal to the marginal cost of production. This means that the last unit produced provides a benefit to consumers that is equal to the cost of producing it, resulting in the most efficient use of resources.

Which of the Following Describes a Situation in Which Every