Asked by
Yusuf Abdoulaye
on Dec 11, 2024
Verified
Suppose external benefits are present in a market which results in the actual market price of $14 and market output of 150 units. How does this outcome compare to the efficient, ideal equilibrium?
A) The efficient outcome would be greater than 150 units.
B) The efficient outcome would be less than 150 units.
C) The efficient outcome would also be 150 units.
D) The efficient price would be less than $14.
External Benefits
Advantages or positive effects that a transaction or activity provides to people not directly involved in it.
Market Price
The current price at which an asset or service can be bought or sold in a specific market.
Market Output
The total amount of goods and services produced and offered for sale by all firms in a particular market.
- Absorb the essentials of resource distribution when faced with external costs and benefits.
Verified Answer
HR
Learning Objectives
- Absorb the essentials of resource distribution when faced with external costs and benefits.