Which of the Following Is Necessary for Allocative Efficiency to Be

question 324

Multiple Choice

Which of the following is necessary for allocative efficiency to be achieved?

• A) Marginal benefit must be maximized.
• B) Marginal cost must be minimized.
• C) Marginal benefit must equal marginal cost.
• D) The difference between marginal benefit and marginal cost must be maximized.
• E) Production must be at a point inside the production possibilities frontier.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.

Corporate Income

The total revenue of a corporation minus operating expenses, taxes, and interest.

Stockholders

Individuals or entities that own shares in a corporation, making them partial owners of the company.

Date of Payment

The date of payment refers to the specific day a payment was made or is scheduled to be made for transactions, bills, or invoices.