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 where marginal cost equals marginal revenue, which is at the point where the demand curve intersects the marginal cost curve. This point is labeled as Qh in the diagram, so Qh units would be the allocatively efficient output for the firm.

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