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After an investigation into the automobile industry, we have concluded the marginal benefit of an additional car is $10,000. The marginal cost of producing an
After an investigation into the automobile industry, we have concluded the marginal benefit of an additional car is $10,000. The marginal cost of producing an additional car is $12,000. It was also discovered that producers are minimizing the average costs of production. We can conclude that Multiple Choice production is allocatively efficient but not productively efficient. production is not allocatively efficient but is productively efficient
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