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    Economics Principles and Policy Study Set 2
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    Exam 11: The Case for Free Markets: the Price System
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    When All Prices Are Set Equal to Marginal Costs
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When All Prices Are Set Equal to Marginal Costs

Question 22

Question 22

Multiple Choice

When all prices are set equal to marginal costs,


A) consumers buy more than they should.
B) consumers will get less utility.
C) markets are giving correct signals to consumers.
D) producers make excessive profits.

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