For Resource Use to Be Allocatively Efficient,when the Marginal Benefit

question 339

Multiple Choice

For resource use to be allocatively efficient,when the marginal benefit of a slice of pizza exceeds the marginal cost,________.

• A) more slices of pizza should be produced
• B) fewer slices of pizza should be produced
• C) no more slices of pizza should be produced
• D) allocative efficiency is reached only if the marginal benefit exceeds the marginal cost by as much as possible
• E) None of the above answers is correct.