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 Efficient