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Allocative Efficiency Occurs in Markets When _____

Question 174

Multiple Choice

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.

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