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Which Statement About Markets, Consumer and Producer Behavior in Markets

Question 4

Multiple Choice

Which statement about markets, consumer and producer behavior in markets, and market theory is false?


A) Market consumers attempt to maximize utility based on preference and price.
B) Market theory states that the market achieves competitive equilibrium based on allocative efficiency.
C) Market competition is the mechanism for setting supply and demand.
D) Market producers attempt to maximize profits based on their mix of input and output.

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