An Underallocation of Resources in an Industry Means That for the Last

Multiple Choice

An underallocation of resources in an industry means that for the last unit produced,

A) economic profit is still rising.
B) society places a higher value on the resources required to produce the last unit than the value society places on consuming the last unit.
C) the demand price for the last unit exceeds the marginal cost of producing the last unit.
D) the cost of producing the last unit exceeds its value to society.
E) long-run average cost is falling.