-Leisure Land produces only sunscreen and camel rides. The table shows the marginal benefit and marginal cost schedules for sunscreen and camel rides. The allocatively efficient number of camel rides is

Question

Quizplus · Accepted Answer

Allocative efficiency is achieved when the marginal benefit (MB) equals the marginal cost (MC) for a product or service. Without the specific numbers from the table, the correct answer cannot be determined through calculation. However, the principle of allocative efficiency guides us to choose the option where MB = MC, which is typically how one would identify the allocatively efficient number of goods or services, such as camel rides, in this context.

-Leisure Land Produces Only Sunscreen and Camel Rides