Allocative efficiency means that A. a good or service is produced as quickly as possible. B. every good or service is produced up to the point where marginal benefit is equal to marginal cost. C. a good or service is produced at the lowest possible cost. D. every good or service is distributed fairly.

Allocative efficiency refers to the optimal distribution of resources in an economy to produce the combination of goods and services that best satisfy consumer preferences. It is achieved when resources are allocated in a way that maximizes the net benefit to society. This occurs when the marginal benefit of producing a good or service equals the marginal cost of producing it. Let's analyze each option: - **A.** *A good or service is produced as quickly as possible.* - This pertains to operational or production efficiency, focusing on the speed of production rather than the optimal allocation of resources. - **B.** *Every good or service is produced up to the point where marginal benefit is equal to marginal cost.* - **This is the correct definition of allocative efficiency.** It ensures that resources are used where they are most valued, maximizing overall societal welfare. - **C.** *A good or service is produced at the lowest possible cost.* - This describes **productive efficiency**, which is about minimizing costs in the production process, not about the optimal distribution of resources. - **D.** *Every good or service is distributed fairly.* - This relates to **equity or fairness** in distribution, not directly to allocative efficiency. **Answer:** B. every good or service is produced up to the point where marginal benefit is equal to marginal cost.