Artificially scarce goods are inefficiently consumed because the market price is zero.

Name: Artificially scarce goods are inefficiently consumed because the market price is zero.
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Question

Quizplus · Accepted Answer

Artificially scarce goods are inefficiently consumed not because the market price is zero, but because their price does not reflect the marginal cost of production, which is often very low or zero, leading to potential overpricing and underconsumption.

Artificially Scarce Goods Are Inefficiently Consumed Because the Market Price