at the output level defining allocative efficiency,

1 Answer to At the output level defining allocative efficiency:a. the areas of consumer and producer surplus necessarily areequalb. It refers to producing the optimal quantity of some output, the quantity where the marginal benefit to society of one more unit just equals the marginal cost. Definition of allocative efficiency. Allocative efficiency is a state when the market equilibrium is at a price that represents consumer preferences; in particular, every good or service is produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of supply. L. Under single pricing, economic profit is measured by (TR - TC) at any given output level. This difference in profit and output levels between single pricing and perfect price discrimination is a direct result of the different total revenue curves faced by the two types of sellers. marginal benefit exceeds marginal cost the greatestamountc. Efficiency. Allocative efficiency is an economic concept regarding efficiency at the social or societal level. The value of allocative efficiency suggests that if the average farmer in the sample is able to reach the level of allocative efficiency of the most efficient farmers, the average farmer will be able to save 23% of costs (1- … D. the areas of consumer and producer surplus are equal. measuring economic, technical and allocative efficiency. If the society is producing the quantity or level of education that the society demands, then the society is achieving allocative efficiency. Allocative efficiency occurs only at that output where: A.marginal benefit exceeds marginal cost the by the greatest amount. A more precise definition of allocative efficiency is at an output level where the Price equals the Marginal Cost (MC) of production. Allocative efficiency happens in a monopoly because at the profit-maximizing output level: P is greater than MC (a). Technical efficiency was defined as the ability to produce the maximum possible output from a given set of inputs and is measured in terms of the relationship between observed output and the maximum attainable output for the observed inputs, for example, the ratio of actual output to Determining “what a society desires” can be a controversial question and is often discussed in political science, sociology, and philosophy classes, as well as in economics. Allocative efficiency values ranged from 0.88 to 1.31 of which average is 1.01. B. consumer surplus exceeds producer surplus by the greatest amount. consumer surplus exceeds producer surplus by the greatestamountd. asked Jun 7 in Economics by apraylor Use the table below to answer the following question. 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