Question

Resources are efficiently allocated when production occurs where?

Answer 1

Resources are efficiently allocated when production occurs where price equals marginal cost. ... This is the point where resources are the mostefficiently allocated, as this is where the maximum profit is attained. Adding the cost of additional resources after this point to produce a unit of output will not be profitable.

Answer 2

Resources are efficiently allocated when production occurs where price equals marginal cost. This is the point where resources are the mostefficiently allocated, as this is where the maximum profit is attained.