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In a Perfectly Competitive Market, Which of the Following Will

Question 16

Multiple Choice

In a perfectly competitive market, which of the following will not occur as a result of a subsidy?


A) The market will under-produce relative to the efficient level.
B) Consumer surplus will be higher than with no subsidy.
C) Producer surplus will be higher with no subsidy.
D) The subsidy causes a deadweight loss.

Correct Answer:

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