Resource Use Is Allocatively Efficient When Marginal Benefit Is

question 92

Multiple Choice

Resource use is allocatively efficient when marginal benefit is

• A) greater than marginal cost.
• B) equal to marginal cost.
• C) less than marginal cost.
• D) at its maximum value.

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Definitions:

Government Rules

Regulations and guidelines established by government authorities to govern behavior, enforce standards, and protect the public interest.

Economies Of Scale

The cost per output unit tends to decrease as the operational scale increases, providing companies with financial advantages due to their size.

Competitively Organized Industry

An industry structure where numerous firms compete with each other to sell similar but not identical products.

Collusively

In a manner where firms in an industry work together secretly to set prices or otherwise manipulate market conditions to their advantage.