When an Externality Is Present, the Market Equilibrium Is

question 116

Multiple Choice

When an externality is present, the market equilibrium is

• A)efficient, and the equilibrium maximizes the total benefit to society as a whole.
• B)efficient, but the equilibrium does not maximize the total benefit to society as a whole.
• C)inefficient, but the equilibrium maximizes the total benefit to society as a whole.
• D)inefficient, and the equilibrium does not maximize the total benefit to society as a whole.

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Definitions:

Ps

Typically refers to the marketing mix's components: Product, Price, Place, and Promotion, which are used to market products effectively.

Cause Marketing

A collaboration between a for-profit business and a nonprofit organization for mutual benefit, often integrating social issues into marketing campaigns.

Change Human Behavior

The process of altering individuals' actions, habits, or attitudes towards more desired outcomes for personal or collective benefit.

Social

Related to society, its organization, or the interactions and relationships within it.