When a society achieves allocative efficiency, it
A) is not achieving production efficiency.
B) is producing that combination of goods and services that society values most highly.
C) might or it might not be producing at a point on society's PPF.
D) is producing a combination of goods and services whose marginal cost exceeds their marginal benefit.
E) is producing the combination of goods and services for which marginal benefit exceeds marginal cost by as much as possible.
B
You might also like to view...
Everything else being equal, a job in which workers face a relatively small chance of being laid off would generally have
a. a lower wage rate b. a higher wage rate c. more fringe benefits d. higher skill requirements e. no expected wage differentials in equilibrium
A college has found that during every home football game, a group of students sits on a hillside next to the stadium and watches the game without purchasing tickets. In economics, the problem that this college is facing is referred to as a
a. common good problem. b. free rider problem. c. onlooker problem. d. deadweight loss problem.