-In the figure above, at the allocatively efficient level of computer production consumers are willing to give up
A)3 televisions per computer.
B)more than 3 televisions per computer.
C)0 televisions per computer.
D)between 0 and 3 televisions per computer.

Question

-In the figure above, at the allocatively efficient level of computer production consumers are willing to give up
A)3 televisions per computer. 
B)more than 3 televisions per computer. 
C)0 televisions per computer. 
D)between 0 and 3 televisions per computer.

Quizplus · Accepted Answer

At the allocatively efficient level of production, the marginal rate of substitution (MRS) between two goods equals the marginal rate of transformation (MRT). If consumers are willing to give up 3 televisions per computer, it indicates that this is the rate at which they are willing to substitute televisions for computers, aligning with allocative efficiency.

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