If the Marginal Benefit from Another Computer Exceeds the Marginal

question 367

Multiple Choice

If the marginal benefit from another computer exceeds the marginal cost of the computer, then to use resources allocatively efficiently

• A) more resources should be used to produce computers.
• B) fewer resources should be used to produce computers.
• C) if the marginal benefit exceeds the marginal cost by as much as possible, the efficient amount of resources are being 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.

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