With allocative efficiency:
A) the state of technology-or methods used to produce output-does not change.
B) the available supplies of factors of production are fixed in both quantity and quality.
C) production of any particular mix of goods and services occurs in the least costly way.
D) production of any particular mix of goods and services is that mix most wanted by society.

Question

Quizplus · Accepted Answer

Allocative efficiency occurs when resources are distributed in a way that maximizes the satisfaction of societal preferences, meaning the mix of goods and services produced is the most desired by society.

With Allocative Efficiency