We Allocate Resources Efficiently When

question 179

Multiple Choice

We allocate resources efficiently when

• A) marginal benefit is equal to marginal cost.
• B) marginal benefit is greater than marginal cost by any amount.
• C) marginal cost is greater than marginal benefit.
• D) total benefit is greater than total cost.
• E) marginal benefit is greater than marginal cost by as much as possible.

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Definitions:

Right of Way

The legal right to pass through property owned by another, or a priority in traffic, allowing certain vehicles or pedestrians to go first.

Estate in Land

The degree, quantity, nature, and extent of interest a person has in real property.

Real Property

Land and anything permanently attached to it, such as buildings and other structures.

Personal Property

Assets not permanently fixed to one location, such as furniture, vehicles, and electronics, as opposed to real estate.