If the marginal benefit from another computer exceeds the marginal cost of the computer, then to use resources allocatively efficiently
A) more resources should be used to produce computers.
B) fewer resources should be used to produce computers.
C) if the marginal benefit exceeds the marginal cost by as much as possible, the efficient amount of resources are being used to produce computers.
D) None of the above is correct because marginal benefit and marginal cost have nothing to do with using resources allocatively efficiently.

Question

Quizplus · Accepted Answer

When the marginal benefit of an additional unit (in this case, a computer) exceeds the marginal cost of producing that unit, it indicates that there is still value to be gained from producing more of that unit. Allocative efficiency is achieved when the production of goods and services reflects consumer preferences; in this scenario, producing more computers would better align production with consumer demand, thus using resources more efficiently.

If the Marginal Benefit from Another Computer Exceeds the Marginal