What are the three conditions that must exist when there is allocation efficiency?
Please provide the best answer for the statement.
Vocative efficiency is achieved when the correct quantity of output is produced relative to other goods and services. Any of the following three conditions define allocation efficiency. At the efficiency point, marginal benefit equals the marginal cost of that level of output. The total of consumer and producer surplus must also be maximized at allocation efficiency. Maximum willingness to pay and minimum acceptable price must also be equal at allocation efficiency.
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The statement "The unemployment rate for teens is higher than that for adults" is
A) a political statement. B) a positive statement. C) a normative statement. D) an ethical statement.
If a change passes the cost-benefit test, then
A) it is a Pareto improvement. B) it may be a Pareto improvement. C) it is not a Pareto improvement. D) total surplus is maximized.