If,at the equilibrium quantity in a market,the benefit of the last unit produced just equals its marginal cost,_____

Question

Quizplus · Accepted Answer

When the benefit of the last unit produced equals its marginal cost, the market is said to have achieved allocative efficiency. This means that resources are allocated in the most efficient way possible, resulting in the production of the quantity that maximizes the overall welfare of society. This does not necessarily mean that each firm earns a positive economic profit or incurs an economic loss, nor does it imply productive efficiency or economies of scale.

If,at the Equilibrium Quantity in a Market,the Benefit of the Last