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 maximisation

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when goods are produced at a point where the marginal benefit to consumers equals the marginal cost of production. This ensures that resources are allocated efficiently and maximizes overall welfare. Productive efficiency, on the other hand, occurs when goods are produced at the lowest possible cost, and profit maximization focuses solely on maximizing profit without regard for consumer welfare. Marginal efficiency is not a commonly used term in economics.

Which of the Following Describes a Situation in Which Every