If an economy cannot produce more of one good without producing less of another good, this implies that which of the following has been achieved? production efficiency minimum marginal cost maximum marginal benefit PPF efficiency allocative efficiency

If an economy cannot produce more of one good without producing less of another good, this implies that which of the following has been achieved? production efficiency minimum marginal cost maximum marginal benefit PPF efficiency allocative efficiency

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter1: What Economics Is About

Section: Chapter Questions

Problem 1WNG

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Question

If an economy cannot produce more of one good without producing less of another good, this implies that which of the following has been achieved?

production efficiency

minimum marginal cost

maximum marginal benefit

PPF efficiency

allocative efficiency

Definition Definition State in which the marginal benefit to a consumer is equal to the marginal cost of producing a product. Allocative efficiency occurs when all the market participants (buyers and sellers) have all of the knowledge required to make informed decisions regarding consumption and production of goods and services.

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