The efficient allocation of resources is based on the fact that: A) firms devote the amount of resources to their good that consumers demand. B) P MC. C) P

Question

The efficient allocation of resources is based on the fact that:
A) firms devote the amount of resources to their good that consumers demand.
B) P > MC.
C) P < MC.
D) economies of scale must exist.
E) monopolists can cater for the entire market.

Quizplus · Accepted Answer

Efficient allocation of resources occurs when firms allocate the amount of resources to produce goods according to consumer demand, ensuring that the goods produced are those most desired by consumers, thereby maximizing utility and minimizing waste.

The Efficient Allocation of Resources Is Based on the Fact