Given a PPF where the marginal cost of producing an additional unit of good X is 5 units of good Y, and the marginal benefit of good X is 5 units of good Y, what is the allocatively efficient point?

• A. Where the marginal cost is greater than the marginal benefit
• B. Where the marginal cost equals the marginal benefit
• C. Where the marginal cost is less than the marginal benefit
• D. Where the PPF is a straight line

Answer: (B)