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AP® Microeconomics

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Overallocation of Resources

APMICR-F9KYTH

If resources are overallocated to production of a good, this means that

A

the marginal costs of production for this product are decreasing.

B

society wants more of this good to be produced.

C

marginal costs of production are less than the marginal benefits.

D

marginal costs of production are greater than the marginal benefits.

E

marginal costs of production are equal to the marginal benefits.