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Suppose That a Market Is in Equilibrium and That There

Question 3

Multiple Choice

Suppose that a market is in equilibrium and that there is no government intervention in the market.If the private marginal cost of producing an item is $4 and the social marginal cost of production is $6,what is the private marginal benefit of the item?


A) $2
B) $4
C) $10
D) $6

Correct Answer:

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