# data[].attributes.body
By : Adam Abudiab
It occurs when the marginal benefit is equal to the marginal cost. This the equilibrium of both slopes which indicates that the business is using all it resources to meet the needs and wants of their consumer. This makes them more successful within their market and owns a significant amount of the market share. Having allocative Efficiency proves that the business has set the most suitable price, while also being able to offer satisfaction from consuming that good or service.
In this graph, it shows that the price is at ten but the quantity demanded is five. On the other hand, when the price decreases to five, the quantity demanded increases. The point where marginal cost (MC) and marginal demanded (MU) meet, is considered allocative efficiency.

# data[].attributes.body
Allocative efficiency is one of the measures of economic efficiency. As shown in the graph, when the market is in equilibrium, with no extend disturbances, it is laid to be in a state of allocative efficiency. Allocative efficiency is achieved with the society produces enough of a good so that MB=MC. Allocative efficiency represents consumer preferences. For example,  If the majority of the consumers demand red car and a few demand blue cars, companies will produce red cars to meet that need. Thus, we could conclude that companies do their best to satisfy the majority of the consumers by producing the highly demanded products.

# data[].attributes.headline
Allocative Efficiency in Competitive Markets

# data[].attributes.subject
Allocative Efficiency in Competitive Markets

# data[].attributes.body
Omar, Mo, Karim, Yara, Nadine

# data[].attributes.body
It is the point in the economy where all consumer preferences are met, where consumers and suppliers are both happy. Marginal benefit refers to consumer satisfaction; the maximum amount that one is willing to pay for a good or a service. It tends to drop as more is consumed because satisfaction decreases with extra consumption. For example, consuming a first bag of chips is very satisfying, but the second bag would feel less satisfying.Marginal cost is the cost added by producing more of a product. It rises as more is made.
At the point where MB = MC, that is when the market is at an equilibrium and has achieved allocative efficiency. Consumers' needs/wants are fulfilled, and suppliers are content with the amount of costs they are spending.
- Nadine

# data[].attributes.body
Looking at the graph, if the marginal cost was 10, and people were only willing to pay 5 for it, this is called allocative inefficient. This is because the value people get, which is 2, is less than the cost of producing. The cost is greater than the benefit, therefore, it is inefficient.

# data[].attributes.body
Allocative efficiency is one of the measures of economic efficiency used by economists, it is the point in the economy at which production represents consumer preferences and it is at an output level where the price of goods and services equals the marginal costs of production. This is because the price that consumers are willing to pay is equal to the marginal benefit they receive. Thus, allocative efficiency is only achieved the marginal benefit of the goods equals to the marginal costs. (MB = MC)
Marginal benefit refers back to the consumer satisfaction. It is the maximum amount that one is willing to pay to consume more of a good or a service. It tends to drop as more is consumed because satisfaction declines with extra consumption. (downwards slope on a curve)

Marginal cost is the cost added by producing one extra product. As more is made, it tends to rise. (upwards slope on a curve)

From the curve, allocative efficiency dictates whether a market is producing what consumers want.

Mo, Omar, Karim, Yara

# data[].attributes.headline
Put your groups best work here.  Refer to RUBRIC on the board.

# data[].attributes.subject
Put your groups best work here.  Refer to RUBRIC on the board.

# data[].attributes.headline
Allocative efficiency is achieved when an economy is producing goods at the lowest possible cost along, with the 'right' goods. This concept occurs when the competitive market is at equilibrium, as the marginal social cost is equal to marginal social benefit. Marginal cost being  the cost added to produce more units of a product and marginal benefit being the consumers satisfaction. 

# data[].attributes.subject
Allocative efficiency is achieved when an economy is producing goods at the lowest possible cost along, with the 'right' goods. This concept occurs when the competitive market is at equilibrium, as the marginal social cost is equal to marginal social benefit. Marginal cost being  the cost added to produce more units of a product and marginal benefit being the consumers satisfaction. 

# data[].attributes.body
Ex: At point A the quantity demanded for coffee at 3$ will be 3 million this is allocatively inefficient. If the marginal cost of the good was 3$ and the price was 7$

# data[].attributes.body
xAllocative efficiency is the state of the economy where production represents consumer preferences, good are produced to the point where marginal benefit will equal to the marginal cost of producing. Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good and service and the total amount that they actually pay. Supplier surplus is a measure between the amount a producer of a good receives and the minimum amount the producer accepts for the good.

# data[].attributes.headline
Thursday write: Using a diagram, explain allocative efficiency.

# data[].attributes.subject
Thursday write: Using a diagram, explain allocative efficiency.