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

## Step 1<br />Allocative 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.<br /><br />## Step 2<br />The 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.<br /><br />## Step 3<br />This 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.<br /><br />## Step 4<br />In 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.