Allocative efficiency occurs in markets when _____
A) the marginal benefit that consumers attach to the last unit purchased equals the opportunity cost of the resources employed to produce that unit.
B) the marginal benefit that consumers attach to the last unit purchased exceeds the opportunity cost of the resources employed to produce that unit.
C) goods are produced at the minimum of average total cost.
D) goods are distributed evenly among consumers.
E) government establishes price ceilings below the market price.
Correct Answer:
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Q1: An industry consists of all firms that
Q169: Exhibit 8.13 Q170: To achieve allocative efficiency,firms _ Q171: We say that equilibrium in a perfectly Q172: If MC's Hammers,a perfectly competitive firm,finds that Q173: If,at the equilibrium quantity in a market,the Q175: Exhibit 8.13 Q176: In the short run,producer surplus equals _ Q178: Resources are efficiently allocated when production occurs Q179: Exhibit 8.13 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
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A)strive to minimize
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A)total
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