Efficiency is consistent with
A) maximizing net benefits.
B) equating marginal benefits and marginal costs.
C) maximizing total benefits.
D) minimizing total costs.
E) a and b

Question

Quizplus · Accepted Answer

Efficiency is achieved when net benefits are maximized and when marginal benefits are equated with marginal costs. This means that resources are being allocated in a way that maximizes the overall benefits society receives and minimizes any waste or inefficiencies. Therefore, both choices A and B are consistent with the concept of efficiency. Choice C may not necessarily result in efficiency if the costs of achieving total benefits exceed the benefits themselves. Choice D may also not result in efficiency if minimizing total costs leads to a reduction in overall benefits.

Efficiency Is Consistent with