When economic efficiency is attained, it implies all of the following, except:
A) Per-unit cost of output produced is at minimum
B) Allocative efficiency is achieved
C) Total consumer and producer surplus is at a maximum
D) The gap between marginal benefits and marginal costs of production is at maximum

Question

Quizplus · Accepted Answer

Economic efficiency is achieved when the gap between marginal benefits and marginal costs of production is minimized, not maximized. Therefore, D is the correct answer as it is the only option that does not accurately describe economic efficiency. A, B, and C all represent characteristics of economic efficiency.

When Economic Efficiency Is Attained, It Implies All of the Following