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If, in a Competitive Market, Marginal Benefit Is Less Than

Question 413

Multiple Choice

If, in a competitive market, marginal benefit is less than marginal cost,


A) the net benefit to consumers from participating in the market is less than the net benefit to producers.
B) the government must force producers to raise prices in order to achieve economic efficiency.
C) the quantity sold is greater than the equilibrium quantity.
D) the quantity sold is less than the equilibrium quantity.

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