When Does Allocative Efficiency Occur

question 75

Multiple Choice

When does allocative efficiency occur?

• A)When the price of the product is equal to its short-run average cost.
• B)When the price of the product is equal to its long-run average cost.
• C)When the price of the product is equal to its marginal cost.
• D)When the price of the product is below its marginal cost.

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