20.5k views
2 votes
When the mix of goods and services produced is just what society desires, then __________ exists?

User Lofte
by
8.3k points

1 Answer

6 votes

The answer is "allocative efficiency".

Allocative efficiency is a condition of the economy in which good produced speaks to buyer inclinations; specifically, every good or service is delivered up to the point where the last unit gives a negligible advantage to buyers equivalent to the peripheral cost of producing. Allocative efficiency happens where cost is equivalent to marginal cost that is ( P=MC), in light of the fact that cost is society's proportion of relative worth of an item at the margin or its marginal benefit.

User Berit Larsen
by
8.2k points

No related questions found