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Which of the following statements regarding the allocation of resources is NOT true?

A

Resources are efficiently allocated when markets are perfectly competitive.

B

Resources are not efficiently allocated when negative externalities exist in a perfectly-competitive market.

C

Resources are efficiently allocated when positive externalities exist in a perfectly-competitive market.

D

Resources are efficiently allocated when a firm produces at the output where $P = MC$.

E

Resources are not efficiently allocated by unregulated single-price monopolies.