Resources are efficiently allocated when production occurs at that output level where price

A) equals marginal cost.
B) equals marginal revenue.
C) is greatest over average cost.
D) is equal to average total cost.

Efficiently Allocated

A state where resources are distributed in a manner that maximizes the net benefits to society.

Marginal Revenue

The surplus income generated by a company through the sale of one extra unit of a good or service.

Average Cost

The total cost of production divided by the number of goods produced, synonymous with average total cost, indicating the cost on a per unit basis.