Allocative efficiency exists when net benefit is as large as possible.

Name: Allocative efficiency exists when net benefit is as large as possible.
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Question

Quizplus · Accepted Answer

Allocative efficiency occurs when resources are allocated in a way that maximizes overall net benefit. This means that the value of the goods or services produced is equal to the cost of producing them, resulting in the greatest possible satisfaction for consumers and producers.

Allocative Efficiency Exists When Net Benefit Is as Large as Possible