An efficient distribution of goods requires that
A)everyone gets an equal share of each good.
B)marginal cost equal marginal utility for the last unit produced.
C)each person derives the same total utility from the good.
D)since tastes differ, every person pays a different price in accordance with different marginal utilities.

Question

Quizplus · Accepted Answer

Efficient distribution in economics means that goods are allocated in a way that maximizes total utility. This is achieved when the marginal cost (the cost of producing one additional unit) equals the marginal utility (the additional satisfaction or benefit gained from consuming one more unit) for the last unit produced. This ensures that resources are not wasted on producing goods that provide less utility than they cost to produce.

An Efficient Distribution of Goods Requires That