Resources are allocated efficiently when

A) the market produces what people want.
B) economic profits are zero.
C) output is distributed in an equitable fashion.
D) output is produced in a sustainable fashion.

Efficient Allocation

The process whereby resources are distributed in the most effective manner, maximizing the net benefits received by society.

Economic Profits

Economic profits are the total revenues of a firm minus the opportunity costs of all inputs, reflecting the surplus generated beyond the normal rate of return.