When there is allocative efficiency in a purely competitive market for a product, the minimum price producers are willing to accept is

A) less than marginal benefit.
B) greater than marginal cost.
C) equal to the amount of efficiency or deadweight losses.
D) equal to the maximum price consumers are willing to pay.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; in other words, every good or service is produced up to the point where the last unit provides a utility level equal to the cost of producing it.

Marginal Benefit

The incremental enjoyment or advantage received from the consumption or creation of one more unit of a good or service.

Minimum Price

The lowest price at which a product or service can be sold, often regulated by governmental policies or agreements to ensure fair competition and to protect consumers or producers.