Refer to the diagram for athletic shoes. If the current output of shoes is Q 1 , then:

image

A. society would consider additional units of shoes to be more valuable than alternative uses
of those resources.
B. society would consider additional units of shoes to be less valuable than alternative uses of
those resources.
C. society would experience a net loss by producing more shoes.
D. resources are being allocated efficiently to the production of shoes.

ANSWER:

A