Question

The term allocative efficiency refers to: Group of answer choices the production of a good at the lowest average total cost. the level of output that coincides with the intersection of the MC and AVC curves. the production of the product mix most desired by consumers. minimization of the AFC in the production of any good.

Answer 1

Answer:

the production of the product mix most desired by consumers

Explanation:

Allocative efficiency is the way an economic activity is aligned to the preferences of the consumer.

Effort is made to tailor goods and services to what the consumer wants.

In effect each unit of product produces a marginal benefit that is equal to the marginal cost of producing the good.

Allocative efficiency ensures that each good is assigned to it's very best use and no other allocation will produce a better outcome