When Every Good or Service Is Produced Up to the Point

question 219

Multiple Choice

When every good or service is produced up to the point where the last unit provides ________, allocative efficiency occurs.

• A)a marginal benefit to society equal to the marginal cost of producing it
• B)a marginal benefit to society greater than the marginal cost of producing it
• C)a marginal benefit to society less than the marginal cost of producing it
• D)a marginal benefit to society equal to zero

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Definitions:

Conclusion

Conclusion is the final part of something, or in logic, the statement that logically follows from the premises in an argument.

Introduces

To present or bring to notice something for the first time, or to make something known that was previously unknown.

Consequently

A term indicating that as a result of something previously stated, a logical conclusion or outcome follows.

Explanation

A statement or account that makes something clear or understandable by describing the relevant structure, mechanisms, reasons, or context.