Allocative Efficiency Occurs Whenever

question 103

Multiple Choice

Allocative efficiency occurs whenever

• A)consumer surplus is maximized.
• B)it is impossible to produce a net benefit for society by changing the combination of goods and services produced.
• C)firms have maximized their profits.
• D)it is impossible to make someone in society better off without making someone else worse off.

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Definitions:

Extra Production

Extra production refers to the quantity of goods produced beyond the planned or expected level due to increased demand or efficiency gains.

Proportional Relationship

A relationship between two quantities in which they increase or decrease at the same rate, resulting in a constant ratio or fraction.

Online Advertising

The practice of using internet-based platforms to disseminate marketing messages to attract customers.

Print Advertising

Advertising in newspapers, magazines, newsletters, and other printed materials intended for distribution.