The answer is True. Allocative Efficiency occurs where the collective sum of consumer and producer surplus is at a maximum.
Allocative efficiency is a condition of the economy wherein creation is lined up with shopper inclinations; specifically, every great or administration is delivered up to where the last unit gives a peripheral advantage to buyers equivalent to the minor expense of creating.
Allocative efficiency happens when purchaser request is totally met by supply. At the end of the day, organizations are giving the specific stockpile that customers need. For example, a cook has 10 clients needing a chilled donut. The dough puncher had made precisely 10 that morning - significance there is Allocative efficiency.
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