$$\begin{array} { | l | l | l | }
\hline \begin{array} { l }
\text { Camel } \
\text { rides (per } \
\text { day) }
\end{array} & \begin{array} { l }
\text { Marginal } \
\text { benefit } \
\text { (tubes of } \
\text { sunscreen) }
\end{array} & \begin{array} { l }
\text { Marginal } \
\text { cost } \
\text { (tubes of } \
\text { sunscreen) }
\end{array} \
\hline 1 & 20 & 11 \
\hline 2 & 18 & 12 \
\hline 3 & 16 & 13 \
\hline 4 & 14 & 14 \
\hline 5 & 12 & 15 \
\hline 6 & 10 & 16 \
\hline
\end{array}$$
-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) 2 rides per day
B) 4 rides per day
C) 6 rides per day because that is the maximum number of rides
D) 1 ride per day because the marginal benefit exceeds the marginal cost by as much as possible

Question

$$\begin{array} { | l | l | l | } 
\hline \begin{array} { l } 
\text { Camel } \
\text { rides (per } \
\text { day) }
\end{array} & \begin{array} { l } 
\text { Marginal } \
\text { benefit } \
\text { (tubes of } \
\text { sunscreen) }
\end{array} & \begin{array} { l } 
\text { Marginal } \
\text { cost } \
\text { (tubes of } \
\text { sunscreen) }
\end{array} \
\hline 1 & 20 & 11 \
\hline 2 & 18 & 12 \
\hline 3 & 16 & 13 \
\hline 4 & 14 & 14 \
\hline 5 & 12 & 15 \
\hline 6 & 10 & 16 \
\hline
\end{array}$$
-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) 2 rides per day
B) 4 rides per day
C) 6 rides per day because that is the maximum number of rides
D) 1 ride per day because the marginal benefit exceeds the marginal cost by as much as possible

Quizplus · Accepted Answer

The allocatively efficient number of camel rides is 4 rides per day because that is the point where the marginal benefit equals the marginal cost.

-Leisure Land Produces Only Sun Screen and Camel Rides