Use the Following to Answer Question(s): Market Failure

question 151

Multiple Choice

Use the following to answer question(s) : Market Failure

-(Exhibit: Market Failure) If the market produces quantity E, then:

• A) marginal benefit is equal to marginal cost.
• B) marginal benefit is less than marginal cost.
• C) marginal benefit is greater than marginal cost.
• D) price is equal to marginal cost and greater than marginal benefit.

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Definitions:

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