Allocative efficiency occurs whenever:

A) consumer surplus is maximized.
B) it is impossible to produce a net benefit for society by changing the combination of goods and services produced.
C) firms have maximized their profits.
D) it is impossible to make someone in society better off without making someone else worse off.

Allocative Efficiency

Occurs when resources are distributed in a way that maximizes the net benefit to society.

Consumer Surplus

The difference between the maximum price a consumer is (or consumers are) willing to pay for an additional unit of a product and its market price; the triangular area below the demand curve and above the market price.

Net Benefit

Net benefit refers to the total positive effects or advantages of a decision or action, minus any costs or negative effects associated with it.