To achieve allocative efficiency,one must compare the
A) marginal cost of a good to its opportunity cost.
B) opportunity cost to the attainable point on the production possibilities frontier.
C) marginal benefit of a good to its marginal cost.
D) marginal cost to the production efficiency cost.
E) point of production efficiency to the point of allocative efficiency.

Question

Quizplus · Accepted Answer

Allocative efficiency is achieved when the marginal benefit of a good or service equals its marginal cost. This means that society is producing the optimal amount of the good or service and allocating resources efficiently. Therefore, comparing the marginal benefit of a good to its marginal cost is necessary to achieve allocative efficiency.

To Achieve Allocative Efficiency,one Must Compare the