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Which of the Following Correctly Describes the Market-Clearing Price

Question 2

Multiple Choice

Which of the following correctly describes the market-clearing price?


A) It is the price which minimizes the aggregate surplus in the market.
B) It is the same as the equilibrium price.
C) It is the price at which the maximum quantity of the good is sold.
D) It is the minimum price at which the product must be sold for the firm to remain in business.
E) It is the price at which firms have to exit the market.

Correct Answer:

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