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Economics Mcqs
Q
When you consume good Q, not only do you benefit form consuming the good but other people benefit from your consumption as well, if firms produce good Q where P = MC, firms will be producing ?
AA. Less than the efficient level of output
BB. More than the efficient level of output
CC. So that consumer surplus is zero
DD. The efficient level of output
Correct Answer:
A. A. Less than the efficient level of output