In a Competitive Market, If the Production Process Involves an External

question 94

Multiple Choice

In a competitive market, if the production process involves an external benefit, the market will

• A) produce the economically efficient outcome.
• B) result in a market price that is higher than the efficient one.
• C) result in a market price that is lower than the efficient one.
• D) result in too much of the good being produced compared to the ideal efficient outcome.

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Definitions:

District of Columbia

The capital of the United States, Washington D.C., which is not part of any state.

Predominant-Purpose Test

The predominant-purpose test is a legal principle used to determine the character of a contract based on its primary objective, especially in mixed contracts involving elements of both goods and services.

Article 2

A section of the Uniform Commercial Code that governs the sale of goods in the United States.

Article 2(A)

Generally refers to a specific section within a broader legal document or statute, often needing context for precise definition.