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The marginal benefit of an additional beach towel is $8. The margial cost of producing an additional beach towel is $12. If producers
are not minimizing the average costs of production, then we can conclude
A beach towel production is neither allocatively nor productively efficient.
B beach towel production is both allo catively and productively efficient
C beach towel production is allocatively efficient but not productively efficient.
D beach towel production is not allocatively efficient but is produdayely efficient.

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