An Effective Production Quota

question 77

Multiple Choice

An effective production quota

• A)is efficient because it results in overproduction.
• B)is efficient because it results in underproduction.
• C)is inefficient because it results in underproduction.
• D)is inefficient because it results in overproduction.
• E)is efficient for quantities below the equilibrium quantity and is inefficient for quantities above the equilibrium quantity.