Which of the Following Is Necessary for Allocative Efficiency to Be

question 324

Multiple Choice

Which of the following is necessary for allocative efficiency to be achieved?

• A) Marginal benefit must be maximized.
• B) Marginal cost must be minimized.
• C) Marginal benefit must equal marginal cost.
• D) The difference between marginal benefit and marginal cost must be maximized.
• E) Production must be at a point inside the production possibilities frontier.

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Definitions:

Breast Milk

The milk produced by human breasts following birth, tailored to meet the nutritional needs of the baby.

Newborns

Infants who are in the first few weeks of life outside the womb, typically up to one month old.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, which controls most functions of the body and mind.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brainstem down the back, and is encased in the vertebral column.