What Is Allocative Efficiency

question 11

Multiple Choice

What is allocative efficiency?

• A)It refers to a situation in which resources are allocated to their highest profit use.
• B)It refers to a situation in which resources are allocated such that goods can be produced at their lowest possible average cost.
• C)It refers to a situation in which resources are allocated such that the last unit of output produced provides a marginal benefit to consumers equal to the marginal cost of producing it.
• D)It refers to a situation in which resources are allocated fairly to all consumers in a society.

---

Definitions:

Continuous Random Variables

Variables that can take an infinite number of values within a given range.

Infinite

A term describing a quantity without bounds or end, often used in mathematics and physics.

Continuous Probability Distributions

Probability distributions in which the data can take infinitely many values within a given range.

Poisson Probability Distribution

A discrete probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, assuming these events occur with a known constant mean rate and independently of the time since the last event.