Resources are efficiently allocated when production occurs where
A)marginal cost equals average variable cost.
B)price is equal to average revenue.
C)price is equal to marginal cost.
D)price is equal to average variable cost.

Question

Quizplus · Accepted Answer

Resources are efficiently allocated when the price of a good equals the marginal cost of producing it. This condition ensures that the value consumers place on the last unit produced is exactly equal to the cost of producing that unit, leading to an efficient allocation of resources.

Resources Are Efficiently Allocated When Production Occurs Where