Suppose External Benefits Are Present in a Market Which Results

question 32

Multiple Choice

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.

---

Definitions:

Resources

Assets, materials, or other items of value that are available to an individual or organization to achieve goals or carry out activities.

Zero Emissions

Occur when carbon or polluting emissions are reduced and/or offset so that there is no net addition of emissions that are harmful to the environment or climate, usually by the emitting source.

Recycling

The process of converting waste materials into new materials and objects, aimed at reducing the consumption of fresh raw materials.

Waste Minimisation

Strategies and processes implemented to reduce the amount of waste produced by a company or during a specific process.