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At the Output Level Defining Allocative Efficiency

Question 225

Multiple Choice

At the output level defining allocative efficiency,


A) the areas of consumer and producer surplus necessarily are equal.
B) marginal benefit exceeds marginal cost by the greatest amount.
C) consumer surplus exceeds producer surplus by the greatest amount.
D) the maximum willingness to pay for the last unit of output equals the minimum acceptable price of that unit of output.

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