The change in total output when one additional unit of labor is hired is known as the

Which of the following is necessary for allocative efficiency to be achieved?

A) Marginal benefit must be maximized. B) Marginal cost must be minimized. C) Marginal benefit must equal marginal cost. D) The difference between marginal benefit and marginal cost must be maximized. E) Production must be at a point inside the production possibilities frontier.

In the table above, if Brent maximizes his utility by consuming 3 bags of popcorn and 3 bottles of soda, then the ratio of the price of popcorn to the price of soda is expected to be

A) 1/2. B) 5/6. C) 6/5. D) 2.