Allocative Efficiency Occurs in Markets When

question 97

Multiple Choice

Allocative efficiency occurs in markets when

• A)goods are produced using the least amount of society's scarce resources
• B)goods are produced at the lowest possible average total cost
• C)goods are produced at the lowest possible marginal cost
• D)the value to society of the last unit produced equals its marginal cost
• E)the value to society of the last unit produced is greater than its marginal cost

---

Definitions:

Processing Time

The duration taken to complete a particular task or operation, often a critical factor in determining overall production efficiency.

Shortest Processing Time

A scheduling method where tasks are ordered and selected based on the smallest amount of time required to complete them.

Average Completion Time

The mean time taken to finish a task or process, calculated over a defined set of instances.

Competitive Advantage

represents a company's ability to perform in a manner that allows it to outperform competitors, achieved through innovation, quality, service, or efficiency.