Profit maximization for firms is to marginal revenue as efficient resource allocation is to what?

Profit maximization for firms is closely related to the concept of marginal revenue, which is the extra income a company earns from selling one more unit of a product. Similarly, efficient resource allocation is related to marginal cost, which is the cost of producing one additional unit of a good or service. When a firm allocates resources efficiently, it means that it is using its inputs in a way that maximizes output without wasting materials or time. For example, if a factory can produce more toys by using fewer workers efficiently, it is allocating its resources well. Just as firms aim to increase profit by balancing marginal revenue and costs, they also strive to achieve efficiency by balancing the costs of inputs with the benefits of outputs.