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Which of the Following Are the Rules for Finding the Point

Question 37

Multiple Choice

Which of the following are the rules for finding the point of allocative efficiency?


A) Produce on the PPF and then produce where the marginal benefit and marginal cost are as large as possible.
B) Produce on the PPF and then produce where marginal benefit equals marginal cost.
C) Produce on the PPF and then produce where marginal benefit and marginal cost are constant.
D) Produce on the PPF and then produce where the marginal benefit exceeds marginal cost by as much as possible.
E) Produce anywhere on the PPF.

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