The marginal benefit of an additional beach towel is $12 the marginal cost of producing an additional beach towel is $8 as producers are minimizing the average cost of production and we can conclude:.
A. beach towel production is allocatively efficient than not productively efficient.
B. Beach Tower production is not allocatively efficient but is productively efficient.
C. beach towel production is neither allocatively nor productively efficient
D. beach towel production is both allocatively and productively efficient

The former chairman of the federal reserve, alan greenspan, used the term "irrational exuberance" in 1996 to describe the high levels of optimism among stock market investors at the time. stock market indexes such as the s& p composite price index were at an all-time high. some commentators believed that the fed should intervene to slow the expansion of the economy. why would central banks want to clamp down when the economy is growing? a. to block the formation of unsustainable speculative asset bubbles. b. to curtail excessive profits in the banking system. c. to prevent inflationary forces from gathering momentum. d. all of the above. e. a and c only.