-The Figure Above Shows Kaley's Marginal Benefit from Swimming with Manatees

question 186

Multiple Choice

-The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours.For Kaley and Scott,allocative efficiency is achieved at what point?

• A) A
• B) B
• C) C
• D) D
• E) Either point A or point D

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Definitions:

Intuitive Lowest-cost Method

An approach for making decisions or solving problems by identifying and selecting the option that appears to result in the lowest cost, based more on instinct than on detailed analysis.

Northwest-corner Rule

A method used in optimization problems, specifically in transportation and logistics, to find an initial feasible solution.

Optimal Solution

The best possible answer to a problem, given constraints and objectives, usually determined by mathematical models or algorithms.

Filled Cells

In manufacturing or production layouts, cells or units that are maximally utilized with machinery or equipment, optimizing space and workflow.