-In the figure above, at the allocatively efficient level of computer production the marginal cost of producing a computer is
A) between 0 and 3 televisions per computer.
B) 3 televisions per computer.
C) 0 televisions per computer.
D) more than 3 televisions per computer.

Question

-In the figure above, at the allocatively efficient level of computer production the marginal cost of producing a computer is
A) between 0 and 3 televisions per computer. 
B) 3 televisions per computer. 
C) 0 televisions per computer. 
D) more than 3 televisions per computer.

Quizplus · Accepted Answer

At the allocatively efficient level of production, the marginal cost of producing a computer is equal to the marginal benefit, which is represented by the opportunity cost in terms of televisions. Here, it is 3 televisions per computer.

-In the Figure Above, at the Allocatively Efficient Level of Computer