Suppose External Costs Are Present in a Market Which Results

question 60

Multiple Choice

Suppose external costs are present in a market which results in the actual market price of $70 and market output of 150 units. How does this outcome compare to the efficient, ideal equilibrium?

• A) The efficient price would be higher than $70.
• B) The efficient price would be lower than $70.
• C) The efficient price would also be $70.
• D) The efficient output would be greater than 150 units.

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Definitions:

Leader Demands

The requirements or expectations set by a leader for their subordinates or team members to achieve organizational goals.

Effective Size

Refers to the actual impact or capability of a group or organizational unit to achieve its objectives.

Context Factor

An external condition or circumstance that influences the environment in which an event occurs or a decision is made.

Organizational Rewards

Incentives provided by an organization to motivate and recognize its employees' performance.