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If the Current Allocation of Resources in the Market for Hammers

Question 76

Multiple Choice

If the current allocation of resources in the market for hammers is inefficient,then it must be the case that


A) producer surplus exceeds consumer surplus in the market for hammers.
B) consumer surplus exceeds producer surplus in the market for hammers.
C) the sum of consumer surplus and producer surplus could be increased by moving to a different allocation of resources.
D) the costs that sellers of hammers are incurring could be reduced by moving to a different allocation of resources.

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