Allocative Efficiency Occurs When the

question 137

Multiple Choice

Allocative efficiency occurs when the

• A) minimum of average total cost equals average revenue.
• B) minimum of average total cost equals marginal revenue.
• C) marginal cost equals the marginal benefit to society.
• D) marginal revenue equals marginal benefit to society.

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Definitions:

British Airways

A major international airline based in the United Kingdom, known for its global flight operations and extended network.

Core Competencies

Essential capabilities or advantages that a business has, which gives it a competitive edge over others in its industry.

Product Design

The process of creating a new product to be sold by a business to its customers, prioritizing functionality, appearance, and user experience.

Outsources

Outsourcing involves contracting out certain business processes or tasks to external providers, often to reduce costs and improve efficiency.