Author Question: An efficient allocation of resources is reached in the figure above when output equals A) 1 ... (Read 58 times)

storky111 · **on:** Jun 29, 2018

An efficient allocation of resources is reached in the figure above when output equals

A) 1 million.
B) 2 million.
C) 3 million.
D) 4 million.

Question 2

Explain how it might be possible to discuss costs of production of a good or service without using monetary values.

What will be an ideal response?

xiaomengxian · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

All costs are essentially opportunity costs. That is to say that it is simply the value of the next best available alternative. Therefore, it is possible to discuss costs without mentioning monetary costs by analyzing what was given up to produce a good or a service.