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The Diagram Below Shows the Demand and Supply Curves in a Perfectly

Question 31

Multiple Choice

The diagram below shows the demand and supply curves in a perfectly competitive market. The diagram below shows the demand and supply curves in a perfectly competitive market. FIGURE 12-5 -Refer to Figure 12-5.Allocative efficiency occurs A) at output level Q<sub>3</sub>. B) at output level Q<sub>1</sub>. C) at price P<sub>1</sub> and output Q<sub>3</sub>. D) at price P<sub>2</sub> and output Q<sub>2</sub>. E) where the areas 1,2,3,and 4 are maximized. FIGURE 12-5
-Refer to Figure 12-5.Allocative efficiency occurs


A) at output level Q3.
B) at output level Q1.
C) at price P1 and output Q3.
D) at price P2 and output Q2.
E) where the areas 1,2,3,and 4 are maximized.

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