In order to efficiently allocate goods and services,we have to compare
A) total cost to total benefit.
B) total cost to price.
C) marginal benefit to price.
D) marginal cost to marginal benefit.
E) price to marginal cost.

Question

Quizplus · Accepted Answer

To efficiently allocate goods and services, we need to balance the costs and benefits. This involves comparing the marginal cost of producing an additional unit with the marginal benefit of consuming it. By choosing the option where marginal benefit equals or exceeds marginal cost, we can achieve efficient allocation. Therefore, option D, which compares marginal cost to marginal benefit, is the best choice.

In Order to Efficiently Allocate Goods and Services,we Have to Compare