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If the Price of Product Y Is $14 and Its

Question 121

Multiple Choice

If the price of product Y is $14 and its marginal cost is $18,


A) Y is being produced with the least-cost combination of resources.
B) society will realize a net gain if more of Y is produced.
C) resources are being overallocated to Y.
D) resources are being underallocated to Y.

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