Allocative efficiency occurs whenever:
A. consumer surplus is maximized.
B. it is impossible to produce a net benefit for society by changing the combination of goods
and services produced.
C. firms have maximized their profits.
D. it is impossible to make someone in society better off without making someone else worse
off.
Answer: B
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A) 13; 11 B) 12; 13 C) 12; 11 D) 14; 10
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