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.

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Definitions:

Complete Restraint

An absolute limitation or prohibition, often referring to contractual clauses that prevent a party from engaging in certain activities without exceptions.

Nuisance

An act or condition that substantially interferes with the use and enjoyment of land, or is offensive or dangerous to the public.

Assault and Battery

A legal concept involving the actual physical striking of another person (battery), and/or the act of threatening or attempting to cause physical harm (assault).

Intended to Hurt

Actions or words deliberately aimed to cause pain or damage to others.