An Efficient Allocation of Labor Occurs When the

question 150

Multiple Choice

An efficient allocation of labor occurs when the

• A) marginal benefit to workers exceeds the marginal benefit to firms.
• B) marginal benefit to firms exceeds the marginal benefit to workers.
• C) marginal cost to workers is equal to the marginal benefit to firms.
• D) marginal cost and marginal benefit of both workers and the firms are equal to zero.
• E) marginal benefit of workers exceeds the marginal cost to firms by as much as possible.

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