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When a competitive market achieves allocative efficiency, it is implied that rev: 05_10_2018 Multiple Choice the buyers are getting the maximum consumer surplus from the product. the marginal benefit of having the product is greater than the marginal cost. the combined consumer and producer surplus is maximized. the quantity demanded is lower than the quantity supplied.

Answer :

Answer: the combined consumer and producer surplus is maximized.

Explanation:

Allocative efficiency occurs when the production in the economy is aligned with the consumer preferences. Here, the particular mix of the products that the society produces consist of what the society desires.

When a competitive market achieves allocative efficiency, the combined consumer and producer surplus is maximized.

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