Arrange the following steps to achieve allocative efficiency in a monopolistic market: A. Determine the marginal cost of production. B. Set the price equal to marginal cost. C. Assess the demand for the product. D. Adjust production level based on price sensitivity.

To achieve allocative efficiency in a monopolistic market, you first need to assess the demand for the product, which helps you understand how much consumers are willing to pay. Once you know the demand, you determine the marginal cost of production, which tells you how much it costs to make one more unit of the product. After that, you adjust the production level based on how sensitive consumers are to price changes, ensuring you produce the right amount that meets demand without wasting resources. Finally, you set the price equal to the marginal cost, which means the price consumers pay reflects the cost of making the product. For example, if a company makes a gadget for $10 and sees that consumers are willing to pay $15, they should aim to adjust their production and pricing to align with that $10 cost to maximize efficiency while meeting consumer needs.