-In the above figure, if 2 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 more computers
B) marginal cost of a computer exceeds the marginal benefit of a computer, so fewer computers
C) marginal benefit of a computer exceeds the marginal cost 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 above figure, if 2 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 more computers 
B) marginal cost of a computer exceeds the marginal benefit of a computer, so fewer computers 
C) marginal benefit of a computer exceeds the marginal cost 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

Allocative efficiency is achieved when the marginal benefit equals the marginal cost. If the marginal benefit exceeds the marginal cost, more computers should be produced to reach this point.

-In the Above Figure, If 2 Million Computers Are Produced