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If the Price of Bottled Water Is $1

Question 19

Multiple Choice

If the price of bottled water is $1.00 and the marginal cost of producing it is $1.50,


A) bottled water is being produced in an increasing-cost industry.
B) society will realize a net gain if more bottled water is produced.
C) resources are being overallocated to bottled water.
D) resources are being underallocated to all other goods.

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