If Every Firm Knows Its Marginal Cost but a Central

question 68

Multiple Choice

If every firm knows its marginal cost but a central planner cannot know every firm's marginal cost, then:

• A) central planners will outperform competitive markets.
• B) competitive markets will outperform central planners.
• C) central planners and competitive markets will perform equally well.
• D) it is impossible to say whether central planners or competitive markets will perform better.