Allocative Efficiency Occurs When the

question 137

Multiple Choice

Allocative efficiency occurs when the

• A) minimum of average total cost equals average revenue.
• B) minimum of average total cost equals marginal revenue.
• C) marginal cost equals the marginal benefit to society.
• D) marginal revenue equals marginal benefit to society.

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Definitions:

Resources Used

Refers to the various materials, capital, and human resources that are utilized in the production of goods or services.

Due Date

The specific day by which something is due or expected to be completed, such as a payment or assignment.

Product Completion

The final stage in the production process where a product is finished and ready for sale.

Backward Scheduling

Scheduling that involves arranging production activities around the due date for the product.