Ask Question
25 February, 07:45

When there is allocative efficiency in a market, the buyers' maximum willingness to pay for the last unit traded is equal to the sellers' minimum acceptable price for that unit. True or false

a. True

b. False?

+2
Answers (2)
  1. 25 February, 09:21
    0
    The correct answer is letter "A": True.

    Explanation:

    Allocative Efficiency takes place when the preferences of the consumers are the priority. Under that scenario, the output level of the price of a product equals the marginal cost of production. This happens as a result of the consumers' willingness to pay for the product a price that equals the marginal utility of the producers.
  2. 25 February, 11:22
    0
    That answer is A. True
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “When there is allocative efficiency in a market, the buyers' maximum willingness to pay for the last unit traded is equal to the sellers' ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers