800 = 1/2(20 x 40) + 1/2(20x 40)
What is allocatively efficient?
- The level of output where marginal cost and marginal gain are as near to each other as possible is known as allocation efficiency. It indicates that the cost of the good or service is roughly equivalent to the minimal gain from utilizing it.
- When a market is entirely competitive, the quantity supplied equals the quantity sought (this is the quantity that maximizes profit), and as a result, the marginal social cost equals the marginal social benefit (MSC = MSB), which is the quantity that maximizes allocation efficiency.
- A state of the economy known as allocation efficiency is one in which production matches customer preferences; specifically, every good or service is produced up to the point where the final unit offers consumers a marginal benefit equal to the marginal cost of production.
- When there is an ideal distribution of products and services taking into account consumer preferences, allocation efficiency occurs. The allocation efficiency is at the output level when the cost of production is equal to the price. This is because the ideal distribution is reached when a good's marginal value and marginal cost are identical. Consumers' marginal utility and the price they are willing to pay are the same.
To learn more about allocatively efficient visit:https://brainly.com/question/7113859
#SPJ4
