A production quota set below the market equilibrium quantity ______. A. Increases the price, increases producer surplus,
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A production quota set below the market equilibrium quantity ______.
A. Increases the price, increases producer surplus, and is inefficient
B. Creates a shortage and increases farmers’ total revenue but is unfair
C. Is inefficient because farmers’ marginal cost exceeds consumers’ marginal benefit
D. Is efficient because farmers’ surplus increases
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