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:

Clear about Responsibilities

A clear understanding and communication of duties, tasks, and obligations associated with a role or position.

Organized

Being arranged or structured in a systematic way, facilitating efficiency and order.

Salary Negotiable

A phrase indicating that the wage or compensation for a job position can be discussed and possibly adjusted based on the candidate's experience, skills, and the employer's budget.

Annual Salary

The total amount of money that an employee is set to earn over the course of a year for their labor or services.