Figure 12-20
-Refer to Figure 12-20.If the market price is P1,what is the allocatively efficient output level?

Name: Figure 12-20 -Refer to Figure 12-20.If the market price is P1,what is the allocatively efficient output level?
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Question

Figure 12-20 
-Refer to Figure 12-20.If the market price is P1,what is the allocatively efficient output level?

Quizplus · Accepted Answer

Allocative efficiency occurs when marginal cost equals marginal revenue, which is represented by point F on the graph. At P1, Q1 is the output level where marginal cost equals P1, so it is the allocatively efficient output level.

Figure 12-20 -Refer to Figure 12-20.If the Market Price Is P1,what Is