Author Question: Resource use is allocatively efficient A) when marginal benefit equals marginal cost. B) ... (Read 71 times)

maychende · **on:** Jun 29, 2018

Resource use is allocatively efficient

A) when marginal benefit equals marginal cost.
B) whenever marginal benefit exceeds marginal cost.
C) whenever marginal cost exceeds marginal benefit.
D) when the maximum possible quantity is being produced.

Question 2

A monopolistic competitor incurs losses if ________.

A) price is higher than average total cost
B) price is lower than marginal cost
C) price is equal to marginal cost
D) price is lower than average total cost