-In the figure above, the allocatively efficient output of computers is
A) 2 million per year.
B) 4 million per year.
C) 3 million per year.
D) the largest amount possible.

Question

-In the figure above, the allocatively efficient output of computers is
A) 2 million per year. 
B) 4 million per year. 
C) 3 million per year. 
D) the largest amount possible.

Quizplus · Accepted Answer

Allocative efficiency occurs where the price equals the marginal cost of production. In the context of the question, this typically corresponds to the output level where the demand curve intersects the marginal cost curve, which is often given as 3 million per year in such scenarios.

-In the Figure Above, the Allocatively Efficient Output of Computers