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The Market Solves the Incentive Problem When Allocating Resources Because

Question 185

Multiple Choice

The market solves the incentive problem when allocating resources because the:


A) consumers will pay for the good only if its price is greater than the value of use.
B) consumers will pay for the good only if its value of use is greater than the price.
C) suppliers will produce the good only if its cost is less than the value of use.
D) suppliers will produce the good only if its value of use is less than the cost.

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