Figure: Model of a Competitive Market

question 142

Multiple Choice

Figure: Model of a Competitive Market
(Figure: Model of a Competitive Market) Given the figure Model of a Competitive Market, if there are external costs:

• A)resources will be underallocated to the production of the good.
• B)resources will be overallocated to the production of the good.
• C)resources will be allocated efficiently to the production of the good.
• D)the price at P will be higher than if there were no external costs.

---

Definitions:

Found Guilty

A legal judgment where an individual is determined to have committed a crime as charged in a court of law.

Earn More

The act or potential to increase one's income or financial gain.

Halo Effect

The cognitive bias that allows one positive characteristic of an individual to positively influence one's overall perception of them.

Attractive Babies

Infants perceived as physically appealing, often eliciting positive social responses and caretaking behaviors from others.