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Proponents of free markets argue that if all markets were perfectly competitive and if the government allowed prices to be determined by demand and supply,
Proponents of free markets argue that if all markets were perfectly competitive and if the government allowed prices to be determined by demand and supply, then for all products in the economy, Part 2 A. price would equal marginal cost and producer surplus would be maximized. B. marginal cost would equal average variable cost and producer surplus would be maximized. C. marginal cost would equal average variable cost and total surplus to society would be maximized. D
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