Allocative efficiency means that a. every good or service is produced up to the point where marginal benefit is equal to marginal cost. b. a good or service is produced as quickly as possible. c. every good or service is distributed fairly. d. a good or service is produced at the lowest possible cost.

Suppose that a candy maker owns a building and is renting part of the building's space to a doctor. further suppose that because the candy maker is the owner, he has the right to make noise during the day while he makes candy. while the doctor cannot insist on a quiet environment, the doctor could move to a quieter building. however, rent in the next best building is $350/month more than rent in the noisy building. the candy maker can adopt a new technology that eliminates the noise for $275/month. given this situation, can the doctor find a private solution with the candy maker that will make both better off?