Which of the Following Can Result in a Market Producing

question 74

Multiple Choice

Which of the following can result in a market producing an inefficient quantity of a good? i. Competition
Ii) An external cost or an external benefit
Iii) A tax

• A) ii only
• B) ii and iii
• C) iii only
• D) i and iii
• E) i only

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Definitions:

Probated

Referring to the legal process in which a will is reviewed to determine whether it is valid and authentic.

Option Contract

A contract that gives the holder the right, but not the obligation, to buy or sell an asset at a specified price within a specified period.

Legal Detriment

A loss or disadvantage that one party agrees to suffer upon entering into a contract, which serves as consideration for the contract.

Restatement

An authoritative secondary source providing a comprehensive summary of the common law and its applications in various legal cases.