if-the-marginal-cost-of-producing-an-additional-unit-of-good-y-is-4-and-the-marg

Question

If the marginal cost of producing an additional unit of good Y is 4 and the marginal benefit is 2, what should the economy do to achieve allocative efficiency?

Accepted Answer

Decrease the production of good Y.

Answer

Maintain the current production level of good Y.

Answer

Increase the production of both goods.

Answer

Increase the production of good Y.