The allocatively efficient level of output is produced in any market structure when

Question

BlackTom AI · Accepted Answer

Here’s a step-by-step look at each option in the question about allocative efficiency.
Option 1: 'marginal revenue is equal to zero.' This is not the condition for allocative efficiency. A zero marginal revenue occurs in certain monopoly or revenue-maximizing scenarios, not at the allocatively efficient output level. Allocative efficiency concerns the price society pays for a good relative to the marginal cost of producing it, not the revenue-maximizing quantity for a firm.
Option 2: 'average variable cost is at a minimum.' This describes productive efficiency, specifically the point where a firm minimizes average variable costs (or average total costs in some contexts). While productive efficiency matters for cost reasons, allocative efficiency is about the allocation of resources relative to consumer preferences, not about costs per unit at the minimum AVC point.
Option 3: 'long-run economic profit is equal to zero.' This signals normal profit and is a marker of long-run equilibrium in perfectly competitive markets, but it tells us about profitability rather than the allocation of resources to meet consumer wants. Allocative efficiency is about price signaling, not whether firms are earning zero economic profit.
Option 4: 'firms are experiencing economies of scale.' Economies of scale relate to decreasing average costs as output grows, which affects productive efficiency and potential market structure, but it does not define allocative efficiency. Allocative efficiency focuses on the alignment of price with marginal cost, not the presence of scale economies.
Option 5: 'price is equal to marginal cost.' This directly ties to the standard criterion for allocative efficiency: the value that consumers place on the last unit produced (price, reflecting marginal benefit) equals the cost to society of producing that unit (marginal cost). When P = MC, resources are allocated so that the additional benefit to buyers from one more unit equals the additional cost of producing it, which is the essence of allocative efficiency.
In summary, options 1, 2, 3, and 4 describe other efficiency or market concepts (marginal revenue behavior, productive efficiency, zero economic profit, economies of scale) that do not capture the allocative efficiency condition. Option 5 correctly identifies the P = MC criterion that defines allocative efficiency in market output.

The allocatively efficient level of output is produced in any market structure when单项选择题

类似问题

The condition for allocative efficiency is violated when

The following questions refer to the monopoly graph below, where MC = marginal cost, ATC = average total cost, D = demand, and MR = marginal revenue. Which Q and P represents allocative efficiency?

Imperfectly competitive markets do not achieve allocative efficiency because profit maximization for each firm occurs when which of the following is true?

Production occurs up to that level of output at which price Blank ______ marginal cost, resulting in allocative efficiency under pure competition.

The condition for allocative efficiency is

A situation in which an economy is using its resources to produce the best combination of goods and services to satisfy consumer desires is called

A monopolistically competitive industry does not display _ because ________.

When an economy produces a good such that the marginal benefit equals the marginal cost, this indicates that Blank ______. BlackTom题目解析

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单