Allocative Efficiency - Explained
What is Allocative Efficiency?
Written by J. Mance Gordon
Updated at April 23rd, 2024
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What is Allocative Efficiency?
Allocative efficiency refers to the combination of goods (or services) produced is the optimum quantity desired by society as a whole. It is a specific point along the production possibility frontier (curve).
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- Cost-Benefit Analysis
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- Ratchet Effect
- Total Utility (Economics)
- Efficiency Principle
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- Efficiency Theory
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- Capacity Utilization Rate
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