Asked by Justin Maynes on May 19, 2024
Verified
Producing a good in the least costly way is known as allocative efficiency.
Allocative Efficiency
A state of the market where resources are allocated in a way that maximizes the net benefit to society, ensuring that every good or service is produced up to the point where the last unit provides a benefit equal to its cost of production.
- Identify the distinctions between productive and allocative efficiency in the context of markets.
Verified Answer
TL
Tiandra LivelyMay 19, 2024
Final Answer :
False
Explanation :
Allocative efficiency refers to producing the right quantity of goods at the lowest cost. Economic efficiency refers to producing goods in the least costly way.
Learning Objectives
- Identify the distinctions between productive and allocative efficiency in the context of markets.