Allocative efficiency  

From The Art and Popular Culture Encyclopedia

Jump to: navigation, search

Related e

Wikipedia
Wiktionary
Shop


Featured:

Kunstformen der Natur (1904) by Ernst Haeckel
Enlarge
Kunstformen der Natur (1904) by Ernst Haeckel

Allocative efficiency is a state of the economy in which production 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 producing. In the single-price model, at the point of allocative efficiency, price is equal to marginal cost.

See also




Unless indicated otherwise, the text in this article is either based on Wikipedia article "Allocative efficiency" or another language Wikipedia page thereof used under the terms of the GNU Free Documentation License; or on original research by Jahsonic and friends. See Art and Popular Culture's copyright notice.

Personal tools