Figure 13-11

-Refer to Figure 13-11.What is the allocatively efficient output for the firm represented in the diagram?
A)Q₁ units
B)Q₂ units
C)Q₃ units
D)Q₄ units

Name: Figure 13-11 -Refer to Figure 13-11.What is the allocatively efficient output for the firm represented in the diagram? A)Q₁ units B)Q₂ units C)Q₃ units D)Q₄ units
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Question

Figure 13-11
 
-Refer to Figure 13-11.What is the allocatively efficient output for the firm represented in the diagram?
A)Q₁ units 
B)Q₂ units 
C)Q₃ units 
D)Q₄ units

Quizplus · Accepted Answer

Allocative efficiency occurs when the marginal cost of production equals the marginal benefit to consumers. In the diagram, this occurs at output Q3.

Figure 13-11 -Refer to Figure 13-11.What Is the Allocatively Efficient Output for Allocatively