Economic efficiency is characterized by which of the following conditions?

Economic efficiency occurs when resources are allocated in a way that maximizes the total benefit received by society. In this context, the condition where marginal benefit equals marginal cost is foundational. Marginal benefit refers to the additional benefit derived from consuming one more unit of a good or service, while marginal cost is the additional cost incurred from producing one more unit.

When marginal benefit equals marginal cost, it indicates that the resources are being used optimally—producing no more and no less than what is needed to maximize overall welfare. If the marginal benefit were greater than the marginal cost, it would suggest that society could benefit from producing more of the good or service. Conversely, if marginal cost were greater than marginal benefit, it would imply that resources are being wasted on production that does not provide sufficient value to justify its cost. Thus, achieving this balance is essential for ensuring economic efficiency.

The other options do not accurately reflect the definition of economic efficiency. Maximizing profits may not necessarily lead to optimal resource allocation if it occurs without regard for consumer welfare or societal benefit. Similarly, a situation where quantity demanded exceeds quantity supplied indicates a shortage, which is typically a sign of market distortion rather than efficiency. Lastly, uniform pricing among consumers is not a requirement for economic efficiency