Multiple Choice
If the price of bottled water is $2 and the marginal cost of producing it is $2.50,
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.
Correct Answer:
Verified
Correct Answer:
Verified
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