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When the Marginal Cost of Producing a Bike Is Greater

Question 71

Multiple Choice

When the marginal cost of producing a bike is greater than the marginal benefit of the bike, for resource use to be allocatively efficient,


A) people must be educated to demand more bikes.
B) it must be determined if the production of bikes can be increased.
C) more bikes should be produced.
D) no more and no fewer bikes should be produced.
E) fewer bikes should be produced.

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