Figure 9.1:
-Using Figure 9.1,assume point D represents the optimal mix of output.If market forces cause society to produce at point C then:

Question

Figure 9.1: 
-Using Figure 9.1,assume point D represents the optimal mix of output.If market forces cause society to produce at point C then:

Quizplus · Accepted Answer

Point C represents a situation where society is not producing at the optimal mix of output (represented by point D), due to market failure - the market is not allocating resources efficiently. Therefore, D is the correct answer. Option B is incorrect as market forces alone may not necessarily return society to point D, especially if there are external factors that prevent the market from reaching equilibrium. Options A and C are both incorrect as there is no indication of government failure or resource constraints in the given scenario.

Figure 9.1: -Using Figure 9.1,assume Point D Represents the Optimal Mix of Optimal