-In the figure above, if 4 million computers are produced per year then the ________ should be produced to achieve the allocatively efficient use of resources.
A)marginal cost of a computer exceeds the marginal benefit of a computer, so fewer computers
B)marginal benefit of a computer exceeds the marginal cost of a computer, so more computers
C)marginal cost of a computer exceeds the marginal benefit of a computer, so more computers
D)marginal benefit of a computer exceeds the marginal cost of a computer, so fewer computers

Question

-In the figure above, if 4 million computers are produced per year then the ________ should be produced to achieve the allocatively efficient use of resources.
A)marginal cost of a computer exceeds the marginal benefit of a computer, so fewer computers 
B)marginal benefit of a computer exceeds the marginal cost of a computer, so more computers 
C)marginal cost of a computer exceeds the marginal benefit of a computer, so more computers 
D)marginal benefit of a computer exceeds the marginal cost of a computer, so fewer computers

Quizplus · Accepted Answer

If the marginal cost exceeds the marginal benefit, it indicates that resources are being over-allocated to computer production, suggesting that fewer computers should be produced to achieve allocative efficiency.

-In the Figure Above, If 4 Million Computers Are Produced