Question

Which of the following describes a situation in which every good or service is produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing it?

A) productive efficiency
B) allocative efficiency
C) marginal efficiency
D) profit maximizatio

Answer 1

Step-by-step explanation:

Allocative efficiency is a state of the economy in which production represents consumer preferences; in particular, every good or service is produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing