Suppose That External Costs Are Not Fully Reflected in the Market

question 81

Multiple Choice

Suppose that external costs are not fully reflected in the market price of a good.This is an indication of market:

• A) failure.
• B) equilibrium.
• C) efficiency.
• D) optimality.

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Definitions:

Intellectual Property

Legal rights that protect creations of the mind, such as inventions, literary and artistic works, designs, and symbols.

Protect

To legally defend or safeguard an individual, group, or entity from harm or legal infringement.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty providing a uniform international sales law.

International Sales

The process of selling goods or services to customers in different countries, subject to international trade laws and agreements.