Figure 13-17

-Refer to Figure 13-17.What is the allocatively efficient output for the firm represented in the diagram?
A)Qf units
B)Qg units
C)Qh units
D)Qⱼ units

Question

Figure 13-17
 
-Refer to Figure 13-17.What is the allocatively efficient output for the firm represented in the diagram?
A)Qf units 
B)Qg units 
C)Qh units 
D)Qⱼ units

Quizplus · Accepted Answer

Allocative efficiency occurs when marginal cost equals marginal benefit, which is shown at point H in the diagram. Therefore, the allocatively efficient output for this firm is Qh.

Figure 13-17 -Refer to Figure 13-17.What Is the Allocatively Efficient Output for Allocatively