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The graphs below represent two different market structures.

Which of the following is true for the firms in these markets?

A

The firms in the market structure represented in Graph A are allocatively efficient, but those in the structure represented in Graph B are not.

B

The firms in the market structure represented in Graph B are allocatively efficient, but those in the structure represented in Graph A are not.

C

The firms in both market structures are allocatively efficient.

D

The firms in neither market structure are allocatively efficient.

E

The efficiency of the firms cannot be determined from the information given.

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