Milk Costs $2 and the Last Unit Provides $4 in Marginal

question 95

Essay

Milk costs $2 and the last unit provides $4 in marginal utility.Cheese costs $4 and the last unit provides $2 in marginal utility.Is this an efficient allocation of resources? If so, why? If not, why not?

---

Definitions:

Maternal Cigarette Smoking

Refers to the act of smoking cigarettes by a mother during pregnancy, which can lead to various adverse outcomes for the baby.

Miscarriage

The spontaneous loss of a pregnancy before the fetus can survive outside the womb, typically before 20 weeks of gestation.

Prematurity

The condition of being born before the completion of 37 weeks of gestation, often leading to health challenges for the infant.

Strange Situation

A research method developed by psychologist Mary Ainsworth to assess attachment relationships between a caregiver and a child.