If the marginal benefit from another computer exceeds the marginal cost of the computer, then to use resources allocatively efficiently,
A) fewer resources should be used to produce computers.
B) if the marginal benefit exceeds the marginal cost by as much as possible, the efficient amount of resources are being used to produce computers.
C) more resources should be 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 exceeds the marginal cost, it indicates that additional resources should be allocated to produce more computers to achieve allocative efficiency.

If the Marginal Benefit from Another Computer Exceeds the Marginal