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-Refer to Figure 8-16

Question 31

Multiple Choice

-Refer to Figure 8-16. If the market price is P<sub>1</sub>, what is the allocatively efficient output level? A) Q<sub>0</sub> B) Q<sub>1</sub> C) Q<sub>2</sub> D) There is no allocatively efficient output level because the firm is incurring a loss.
-Refer to Figure 8-16. If the market price is P1, what is the allocatively efficient output level?


A) Q0
B) Q1
C) Q2
D) There is no allocatively efficient output level because the firm is incurring a loss.

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