Refer to Figure 26.5.Which firm is producing the allocatively efficient level of output and is using the least amount of economic resources to produce each unit of output?
A)All of the firms.
B)Firms B and D only.
C)Firm B only.
D)Firm D only.

Question

Refer to Figure 26.5.Which firm is producing the allocatively efficient level of output and is using the least amount of economic resources to produce each unit of output?
A)All of the firms. 
B)Firms B and D only. 
C)Firm B only. 
D)Firm D only.

Quizplus · Accepted Answer

Firm B is producing at the allocatively efficient level of output where marginal cost equals marginal revenue, and also using the least amount of economic resources to produce each unit of output as its marginal cost curve intersects the market demand curve at the lowest point.