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:

Prosocial Behavior

Actions intended to benefit others, including behaviors like helping, sharing, and showing compassion.

Observational Learning

The process of learning behaviors by watching and imitating others.

Babysit

The temporary care of a child on behalf of the child's parents or guardians.

Observational Learning

The process of acquiring new behaviors by watching and imitating the actions of others.