Where Does Allocative Efficiency Occur

question 142

Multiple Choice

Where does allocative efficiency occur?

• A) where the price of a good is equal to the marginal cost of producing it
• B) where the greatest quantity of output is available for sale
• C) where the price of a good is greater than the marginal cost of producing it
• D) where the price of a good is less than the marginal cost of producing it

---

Definitions:

Monthly Withdrawals

Regular amounts of money taken out from an account or investment every month.

Investment

The allocation of resources, usually money, with the expectation of generating an income or profit.

Retirement Fund

A Retirement Fund is a pool of funds contributed by employees, employers, or both for the future financial security of retirees.

Withdrawals

The act of taking money out of an account which can affect the account balance and interest calculations.