Technological advance improves allocative efficiency by

A) enhancing monopoly power.
B) reducing income inequality.
C) giving society a more-preferred mix of goods and services.
D) encouraging saving.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; in other words, every good or service is produced up to the point where the last unit provides a utility equal to its cost of production.

Technological Advance

The progress or development in technology, leading to new products, processes, or systems.

Preferred Mix

The optimal combination or assortment of goods, services, investments, or resources desired by an individual, firm, or economy.