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it is a scince

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Ophelia West

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Q: How does scale of preference help consumer and producers to make use of efficient resources?
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How do marginal cost pricing lead to the efficiency in the allocation of resources?

MC pricing can lead to efficient allocation of resources because when the price goes up or down it signals the consumer demand, with that signal the suppliers, producers can figure out what exactly the consumer wants and will purchase there for only producing what is needed, nothing more or less.


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A rational consumer is a consumer who hesitates to be satisfied with the little amount he has. A rational consumer, therefore tries to maximises inorder to get its total utility. He might not decide to draw a scale of preference because he has alimited resources.


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