Business, 06.04.2020 23:18 lj2754

What is allocative efficiency?

A. It refers to a situation in which resources are allocated such the last unit of output produced provides a marginal benefit to consumers equal to the marginal cost of producing it.

B. It refers to a situation in which resources are allocated to their highest profit use.

C. It refers to a situation in which resources are allocated fairly to all consumers in a society.

D. It refers to a situation in which resources are allocated such that goods can be produced at their lowest possible average cost.

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Allocative efficiency is the situation whereby resources are allocated in such a way that the last unit of output that is produced provides a marginal benefit to consumers that is equal to the marginal cost of producing the product. (A)

Explanation:

Allocative efficiency is when production represents the preferences of consumer as every product is produced at the point where the last unit gives a marginal benefit to consumers that is equal to the marginal cost used in producing the product.

Allocative efficiency is the level of output that is achieved when the price of a good or service equates to the marginal cost of production. Allocative efficiency can be achieved when there is an optimal distribution in goods and/or services in response to the demand of consumers and when the marginal cost and the marginwl utility of the product or services are equal.

Answer from: Woodlandgirl14

The correct answer is letter "A": It refers to a situation in which resources are allocated such the last unit of output produced provides a marginal benefit to consumers equal to the marginal cost of producing it.

Explanation:

In Business, allocative efficiency refers to the state where all goods and services in an economy are distributed equally among buyers and sellers. The same concept can be applied to the manufacturing process. Under such a scenario, allocative efficiency refers to a point in which the last unit produced gives a marginal benefit equals the marginal cost for the end-user. The manufacturing company, then, would be producing an output that consumers are most likely to desire.

Answer from: Quest

How is this a question and how u need an answer for this

Answer from: Quest

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

bioteacher101

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What is allocative efficiency?

A. It refers to a situation in which resources are alloca...

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