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A Result of Welfare Economics Is That the Equilibrium Price

Question 218

Multiple Choice

A result of welfare economics is that the equilibrium price of a product is considered to be the best price because it


A) maximizes both the total revenue for firms and the quantity supplied of the product.
B) maximizes the combined welfare of buyers and sellers.
C) minimizes costs and maximizes output.
D) minimizes the level of welfare payments.

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