If the value that consumers place on the 100th unit of chocolate is $5, and the value of the resources used to produce that 100th unit is $2, to achieve an efficient allocation of resources
a. a $3 externality associated with chocolate production must be generated
b. a $3 externality associated with chocolate production must be eliminated
c. less resources should be allocated to chocolate production
d. more chocolate should be produced
e. less chocolate should be produced
D
Economics
You might also like to view...
A person who is ____________ is willing to accept any fair gamble.
Fill in the blank(s) with the appropriate word(s).
Economics
In the above figure, what is the opportunity cost of one bushel of corn?
A) 1 bushel of soybeans B) 0.5 bushel of soybeans C) 2 bushels of soybeans D) unable to determine
Economics