-The table above represents the marginal cost and marginal benefit associated with pizza (in terms of movies). What quantity of pizza should be produced if resources are to be used efficiently?
A) 5 pizzas
B) 6 pizzas
C) 7 pizzas
D) 8 pizzas

Question

-The table above represents the marginal cost and marginal benefit associated with pizza (in terms of movies). What quantity of pizza should be produced if resources are to be used efficiently?
A) 5 pizzas 
B) 6 pizzas 
C) 7 pizzas 
D) 8 pizzas

Quizplus · Accepted Answer

Resources are used efficiently when marginal cost equals marginal benefit. If the table shows that this equality occurs at 7 pizzas, then that is the efficient quantity to produce.

-The Table Above Represents the Marginal Cost and Marginal Benefit