Multiple Choice

-Leisure Land produces only sun screen and camel rides. The table shows the marginal benefit and marginal cost schedules for sun screen and camel rides. The allocatively efficient number of camel rides is .
A) 4 rides per day
B) 6 rides per day because that is the maximum number of rides
C) 2 rides per day
D) 1 ride per day because the marginal benefit exceeds the marginal cost by as much as possible
Correct Answer:
Verified
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