Allocative efficiency

Allocative Efficiency
Definition: Allocative efficiency occurs when there is an optimal distribution of goods and services. This involves taking into account consumer's preferences.

Allocative efficiency Producing the mix of goods and services most wanted by society.

Allocative efficiency - The situation that occurs when no resources are wasted - when no one can be made better off without making someone else worse off.

ALLOCATIVE EFFICIENCY: Obtaining the most consumer satisfaction from available resources.

Allocative efficiency
Refers to whether or not an allocation is efficient. A change from an allocation that is not efficient, to one that is, may be termed an "increase" in allocative efficiency.
Alternative Trade Adjustment Assistance ...

The principal focus of competition policy, market performance refers to the degree to which a particular industry or market meets national objectives for production and allocative efficiency, technical progress, full employment, ...

Definition: The area showing the extent of allocative efficiency.
Related glossary term:
Allocative inefficiency ...

See also: Perfect competition, Equilibrium, Tip, Long-run, Feedback