Suppose the actions of the producers of a good impose an external cost which results in the actual market price of $18 and market output of 400 units. How does this outcome compare to the efficient, ideal equilibrium?
a. The efficient price would higher than $18 while the efficient output would be less than 400 units.
b. The efficient price would be higher than $18 while the efficient output would be greater than 400 units.
c. The efficient price would be lower than $18 while the efficient output would be less than 400 units.
d. The efficient price would be lower than $18 while the efficient output would be greater than 400 units.
A
You might also like to view...
A business organization owned by a group of people for their mutual benefit:
a. a cooperative b. a labor union c. a limited liability partnership d. a professional organization
If an economy's population grows at 3 percent and national income grows at 2 percent, then
a. per capita income is declining b. the economy's standard of living is increasing c. per capita income is negative d. per capita income is growing e. human capital is declining