For resource use to be allocatively efficient, when the marginal benefit of a slice of pizza exceeds the marginal cost,
A) more slices of pizza should be produced.
B) fewer slices of pizza should be produced.
C) no more slices of pizza should be produced.
D) allocative efficiency is reached only if the marginal benefit exceeds the marginal cost by as much as possible.
E) None of the above answers is correct.
A
Economics
You might also like to view...
When demand is ________, a decrease in price ________ total revenue
A) elastic; decreases B) inelastic; decreases C) unit elastic; increases D) elastic; does not change
Economics
If the Bank of America lends $100 million and the reserve requirement is 10%, the monetary base:
a. Falls by $100 million. b. Falls by $10 million. c. Does not change. d. Rises by $100 million. e. Rises by $10 million.
Economics