Question

When every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing​ it, ________ occurs. A. allocative efficiency B. equity C. productive efficiency D. efficient central planning

Answer 1

Answer:

A.

Explanation:

Allocative efficiency is when the markets are working in the most economically efficient manner and there are no externalities (no over production or under production of economic goods and services).

Markets are allocative efficiency when the price equals the marginal cost.

Allocative efficiency is at an output which maximizes total consumer welfare.

is reached when no one can be made better off without making someone else worse off.

Occurs when the value that consumers place on a good or service (reflected in the price they are willing and able to paid) equals the cost of the factors resources used up in production.