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If the Market Demand Curve Does Not Capture All of the Benefits

Question 11

Multiple Choice

If the market demand curve does not capture all of the benefits to society of buying an additional unit of good, then:


A) the market equilibrium will be socially optimal.
B) the market equilibrium will not be efficient.
C) the allocation of resources will be socially optimal.
D) the market will not be in equilibrium.

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