A government is concerned that its economy is failing to achieve allocative efficiency. To achieve allocative efficiency, the government should implement policies that
ensure that resources are directed to producing the combination of goods and services that best satisfies society's wants and preferences.
ensure that all firms are producing at the lowest point on their average cost curves, regardless of consumer demand.
move the economy from a point inside its production possibility frontier to any point along the boundary.
guarantee that every sector in the economy grows at an identical rate.
