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.

---

Definitions:

Law

A system of rules created and enforced through social or governmental institutions to regulate behavior, ensuring order and justice.

Ethics

A branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong conduct.

Interchangeable

means capable of being used in place of each other with similar function or purpose.

Provincial Law Society

An organization in each Canadian province responsible for regulating the legal profession in the public interest.