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How to Calculate Allocative Efficiency in Excel: Marginal Benefit and Cost Analysis

Allocative efficiency is a crucial concept in economics that signifies the optimal distribution of goods and services in a market. It occurs when the price of a good or service equals the marginal benefit consumers receive from it.

To determine allocative efficiency, market participants must have access data freely and make informed decisions about production and consumption. We show you how to find allocative efficiency in Excel using a graphical method.

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