what-is-allocative-efficiency-in-perfectly-competitive-markets

Question

What is allocative efficiency in perfectly competitive markets?

Accepted Answer

Allocative efficiency occurs when the marginal benefit equals the marginal cost.

Answer

Allocative efficiency occurs when the marginal cost is greater than the marginal benefit.

Answer

Allocative efficiency occurs when the average total cost equals the price.

Answer

Allocative efficiency occurs when the price is less than the marginal cost.