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?

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.

That answer is A. True