If the society is producing the quantity or level of education that the society demands, then the society is achieving allocative efficiency. Allocative efficiency values ranged from 0.88 to 1.31 of which average is 1.01. Technical efficiency was defined as the ability to produce the maximum possible output from a given set of inputs and is measured in terms of the relationship between observed output and the maximum attainable output for the observed inputs, for example, the ratio of actual output to measuring economic, technical and allocative efficiency. Allocative efficiency is a state when the market equilibrium is at a price that represents consumer preferences; in particular, every good or service is produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of supply. This difference in profit and output levels between single pricing and perfect price discrimination is a direct result of the different total revenue curves faced by the two types of sellers. L. Under single pricing, economic profit is measured by (TR - TC) at any given output level. 1 Answer to At the output level defining allocative efficiency:a. the areas of consumer and producer surplus necessarily areequalb. Allocative efficiency happens in a monopoly because at the profit-maximizing output level: P is greater than MC (a). consumer surplus exceeds producer surplus by the greatestamountd. Efficiency. D. the areas of consumer and producer surplus are equal. Determining “what a society desires” can be a controversial question and is often discussed in political science, sociology, and philosophy classes, as well as in economics. This occurs when there is an optimal distribution of goods and services, taking into account consumer’s preferences. If output is at 3 units, then the market ____ allocative efficiency and _____ productive efficiency. Allocative efficiency is an economic concept regarding efficiency at the social or societal level. B. consumer surplus exceeds producer surplus by the greatest amount. C. the combined amounts of consumer surplus and producer surplus are maximized. The value of allocative efficiency suggests that if the average farmer in the sample is able to reach the level of allocative efficiency of the most efficient farmers, the average farmer will be able to save 23% of costs (1- … A more precise definition of allocative efficiency is at an output level where the Price equals the Marginal Cost (MC) of production. Allocational efficiency (also known as allocative efficiency) is a characteristic of an efficient market in which capital is allocated in a way that is most beneficial to the parties involved. marginal benefit exceeds marginal cost the greatestamountc. It refers to producing the optimal quantity of some output, the quantity where the marginal benefit to society of one more unit just equals the marginal cost. asked Jun 7 in Economics by apraylor Use the table below to answer the following question. Definition of allocative efficiency. Allocative efficiency occurs only at that output where: A.marginal benefit exceeds marginal cost the by the greatest amount. the maximum willlingness to …