Resources are allocated efficiently when
A) the exchange value of the resources to demanders is greater than the opportunity cost of the resources.
B) the marginal benefit to demanders of the resources in the goods they purchase is less than the marginal cost to suppliers of the resources they use in producing the goods.
C) firms produce the quantity of output at which price is equal to marginal cost.
D) firms produce the quantity of output at which price is greater than marginal cost.
Correct Answer:
Verified
Q61: Exhibit 22-4 Q62: If an industry is in long-run competitive Q65: The short-run industry supply curve is the Q66: Assume a constant-cost industry that is initially Q68: Why must profits be zero in long-run Q69: Suppose one firm in a perfectly competitive Q71: Is it possible for a perfectly competitive Q74: As firms exit an industry, the industry Q78: Assume a decreasing-cost industry that is initially Q79: Resource allocative efficiency occurs when a firm
A)horizontal
A)minimizes
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents