Using Figure 4.1, suppose that point B represents the optimal mix of output for a society. If market forces cause society to produce and consume at point C, then
A. There is market failure.
B. Points A and D are unattainable with the given resources and technology.
C. The forces of supply and demand will return society to point B.
D. There is government failure.
Answer: A
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What will be an ideal response?