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Social Science Clinic => Economics => Microeconomics => Topic started by: brutforce on May 24, 2019

Title: "Allocative efficiency requires that the maximum number of people have access to all of the goods ...
Post by: brutforce on May 24, 2019

"Allocative efficiency requires that the maximum number of people have access to all of the goods and services that our economy produces." Is this statement true or false? Explain your answer.

Title: "Allocative efficiency requires that the maximum number of people have access to all of the goods ...
Post by: potomatos on May 24, 2019

The statement is false. Allocative efficiency requires that production be such that the marginal benefit equals the marginal cost. Allocative efficiency has nothing to do with requiring that the maximum number of people have access to all the goods and services produced.