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A Market Incentive Plan

Question 78

Multiple Choice

A market incentive plan:


A) regulates the amount of a resource a person can consume through direct limits.
B) requires that people choose to consume until the marginal costs exceed the marginal benefits.
C) makes the price of a resource reflect not only the marginal private costs but also the marginal social costs of consuming that resource.
D) makes the price of a resource reflect the marginal private costs of consuming that resource.

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