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:

Net Present Value

A valuation method that reflects the present value of an investment's future net cash flows minus the initial investment cost.