-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours.For Kaley and Scott,allocative efficiency is achieved at what point?
A) A
B) B
C) C
D) D
E) Either point A or point D

Question

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours.For Kaley and Scott,allocative efficiency is achieved at what point?
A) A 
B) B 
C) C 
D) D 
E) Either point A or point D

Quizplus · Accepted Answer

Allocative efficiency is achieved where marginal benefit equals marginal cost, which is represented by point C in the figure.

-The Figure Above Shows Kaley's Marginal Benefit from Swimming with Manatees