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Suppose a Market Is Currently Producing at a Point Where

Question 27

Multiple Choice

Suppose a market is currently producing at a point where marginal social benefit exceeds marginal cost. For efficiency, production should:


A) be increased.
B) be decreased.
C) not be changed. The current level of production is generating positive net benefits for society.
D) be temporarily increased in order for firms to create more jobs and then decreased to the original level before cost increases set in.

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