In a monopolistic market, allocative efficiency is achieved when which of the following conditions is met?

In a monopolistic market, allocative efficiency is achieved when the price of the product equals the marginal cost of producing it. This means that the amount consumers are willing to pay for the last unit of the product is the same as the cost to produce that last unit. When this condition is met, resources are distributed in a way that maximizes overall satisfaction; no one can be made better off without making someone else worse off. For example, if a monopolist sells a toy for $10, and it costs them $10 to make that toy, they are at allocative efficiency because consumers value that toy exactly at its cost. However, in many monopolistic situations, the price is higher than the marginal cost, leading to a loss of efficiency and unmet consumer demand.