-The table above shows the marginal benefit from pizza and the marginal cost of pizza in cans of cola forgone. The allocatively efficient quantity of pizza is _______ pizzas per day.
A) 70
B) 40
C) more than 70
D) 10

Question

-The table above shows the marginal benefit from pizza and the marginal cost of pizza in cans of cola forgone. The allocatively efficient quantity of pizza is _______ pizzas per day.
A) 70 
B) 40 
C) more than 70 
D) 10

Quizplus · Accepted Answer

The allocatively efficient quantity is where marginal benefit equals marginal cost. If the table shows that this occurs at 40 pizzas per day, then that is the allocatively efficient quantity.

-The Table Above Shows the Marginal Benefit from Pizza and the Marginal