Soru
Complete the statement. Allocative efficiency occurs when __ we cannot produce more of any good without giving up some other good marginal cost is minimized marginal benefit exceeds marginal cost we are producing at a point on the PPF such that marginal benefit at the quantity produced equals marginal cost B Auth nepornon eival unoxpewrikrj
Çözüm
4.2
(221 Oylar)
Yasin
Usta · 5 yıl öğretmeni
Uzman doğrulaması
Cevap
'we are producing at a point on the PPF such that marginal benefit at the quantity produced equals marginal cost'
Daha Fazla
## Step 1Allocative efficiency is a state of an economy where resources are allocated in a way that maximizes the production of goods and services. This means that the resources are distributed in a way that maximizes the satisfaction of consumers.## Step 2The condition for allocative efficiency is that the marginal benefit of a good or service equals the marginal cost of production. This means that the cost of producing an additional unit of a good or service is equal to the benefit that consumers get from consuming that additional unit.## Step 3This condition is represented graphically on the Production Possibility Frontier (PPF). The PPF is a curve that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.## Step 4In the context of allocative efficiency, the PPF is at a point where the marginal benefit of the good or service equals the marginal cost of production. This means that the economy is producing at a point on the PPF such that the marginal benefit at the quantity produced equals the marginal cost.