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Suppose the Market for Diamonds Is a Monopoly

Question 52

Multiple Choice

Suppose the market for diamonds is a monopoly.We can expect


A) underproduction of diamonds.
B) overproduction of diamonds.
C) marginal social benefit to equal marginal social cost in the diamond market.
D) an efficient quantity of diamonds.
E) the allocation of diamonds to be first-come,first-served.

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