Multiple Choice
Which of the following conditions does not need to occur for a market to achieve allocative efficiency?
A) Consumers' maximum willingness to pay equals producers' minimum acceptable price for the last unit of output.
B) The sum of producer and consumer surplus is maximized.
C) The total revenue received by producers equals the total cost of production.
D) The marginal benefit of the last unit produced equals the marginal cost of producing that unit.
Correct Answer:
Verified
Correct Answer:
Verified
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