Refer to Figure 28

question 54

Multiple Choice

Refer to Figure 28.2.If this firm is producing a product that does not generate any externalities, the allocatively efficient output would occur where

• A) Price = MC₃.
• B) Price = MC₁.
• C) Price = MC₂.
• D) Price = MC₁ plus social MC.

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Definitions:

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Arithmetic Ability

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