Suppose the nation is producing at a point on its PPF.If the marginal cost of producing one more computer is greater than the marginal benefit,the nation is producing
A) too few computers to be allocatively efficient.
B) too many computers to be allocatively efficient.
C) the correct number of computers to be allocatively efficient.
D) at the point of allocative efficiency.
E) More information is needed to determine if the nation is or is not producing at the allocatively efficient point.

Question

Quizplus · Accepted Answer

If the marginal cost of producing one more computer is greater than the marginal benefit, it indicates that the nation is producing too many computers to be allocatively efficient. Allocative efficiency is achieved when the production of goods aligns with consumer preferences, meaning the marginal cost equals the marginal benefit.

Suppose the Nation Is Producing at a Point on Its