Atlantis produces only coral beads and exotic shells. The table shows the marginal benefit and marginal cost schedules for exotic shells. If Atlantis produces 43 exotic shells, the marginal benefit from exotic shells To achieve allocative efficiency. Atlantis must OA. is less than; increase OB. exceeds; increase OC. is less than; decrease. OD. exceeds; decrease the marginal cost of exotic shells. the quantity of exotic shells produced. Marginal Exotic shells benefit (per month) 39 11 TI 40 9 41 7 42 5 43 44 (beads per shell) 4 Marginal cost 1 1 2 5 17 29

Atlantis produces only coral beads and exotic shells. The table shows the marginal benefit and marginal cost schedules for exotic shells. If Atlantis produces 43 exotic shells, the marginal benefit from exotic shells To achieve allocative efficiency. Atlantis must OA. is less than; increase OB. exceeds; increase OC. is less than; decrease. OD. exceeds; decrease the marginal cost of exotic shells. the quantity of exotic shells produced. Marginal Exotic shells benefit (per month) 39 11 TI 40 9 41 7 42 5 43 44 (beads per shell) 4 Marginal cost 1 1 2 5 17 29

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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