Allocative Efficiency Is Achieved in an Industry When Firms Supply

question 34

True/False

Allocative efficiency is achieved in an industry when firms supply those goods and services that provide consumers with a marginal benefit equal to the marginal cost of producing those goods and services.

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Definitions:

Idea Screening

The process of evaluating ideas to spot viable options, eliminating those that are less likely to succeed, before significant resources are allocated.