- in Figure 28

question 46

Multiple Choice

- In Figure 28.1,if the externality is internalized,the rate of output will be

• A)Less than 200 units.
• B)200 units.
• C)320 units.

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Definitions:

Arbitraging

The practice of buying and selling the same asset in different markets to profit from price differences.

Differentiated Products

Differentiated Products are products that are similar but distinguished from each other through branding, design, quality, or other features.

Monopolistic Competitor

A market structure in which many firms offer products or services that are similar, but not perfect substitutes, allowing for some degree of market power and price setting.

Significant Barriers

Major obstacles or impediments that prevent new competitors from easily entering an industry or area of business.