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-Leisure Land Produces Only Sun Screen and Camel Rides

Question 59

Multiple Choice

 Camel  rides (per  day)   Marginal  benefit  (tubes of  sunscreen)   Marginal  cost  (tubes of  sunscreen)  120112181231613414145121561016\begin{array} { | l | l | l | } \hline \begin{array} { l } \text { Camel } \\\text { rides (per } \\\text { day) }\end{array} & \begin{array} { l } \text { Marginal } \\\text { benefit } \\\text { (tubes of } \\\text { sunscreen) }\end{array} & \begin{array} { l } \text { Marginal } \\\text { cost } \\\text { (tubes of } \\\text { sunscreen) }\end{array} \\\hline 1 & 20 & 11 \\\hline 2 & 18 & 12 \\\hline 3 & 16 & 13 \\\hline 4 & 14 & 14 \\\hline 5 & 12 & 15 \\\hline 6 & 10 & 16 \\\hline\end{array}
-Leisure Land produces only sun screen and camel rides. The table shows the marginal benefit and marginal cost schedules for sun screen and camel rides. The allocatively efficient number of camel rides is________ .


A) 2 rides per day
B) 4 rides per day
C) 6 rides per day because that is the maximum number of rides
D) 1 ride per day because the marginal benefit exceeds the marginal cost by as much as possible

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