Figure 9-12
-Refer to Figure 9-12.What is the allocatively efficient output for the firm represented in the diagram?

Question

Figure 9-12 
-Refer to Figure 9-12.What is the allocatively efficient output for the firm represented in the diagram?

Quizplus · Accepted Answer

Allocative efficiency occurs when the marginal cost of production equals the market price. In the diagram, the market price is represented by the demand curve and the marginal cost of production is represented by the supply curve. The point where the two curves intersect is Q₃, which represents the allocatively efficient output for the firm. Therefore, choice C is the correct answer.

Figure 9-12 -Refer to Figure 9-12.What Is the Allocatively Efficient Output for Efficient