-In the figure above, at the allocatively efficient level of computer production the marginal cost of producing a computer is
A) 0 televisions per computer.
B) between 0 and 3 televisions per computer.
C) 3 televisions per computer.
D) more than 3 televisions per computer.

Question

-In the figure above, at the allocatively efficient level of computer production the marginal cost of producing a computer is
A) 0 televisions per computer. 
B) between 0 and 3 televisions per computer. 
C) 3 televisions per computer. 
D) more than 3 televisions per computer.

Quizplus · Accepted Answer

At the allocatively efficient level of production, the marginal cost of producing a computer is equal to the opportunity cost of the resources used to produce that computer, which is represented by the slope of the production possibility frontier at that point. If the slope indicates that producing one more computer costs 3 televisions, then the marginal cost is 3 televisions per computer.

-In the Figure Above, at the Allocatively Efficient Level of Computer