Consider a Market in Which There Is an External Benefit

question 193

Multiple Choice

Consider a market in which there is an external benefit. The inefficient market equilibrium is such that

• A) too little output is produced.
• B) too much output is produced.
• C) price is too high.
• D) marginal social cost is greater than marginal social benefit.

---

Definitions:

Indirect Selling

A sales strategy where products or services are sold through intermediaries, such as retailers or wholesalers, rather than directly to consumers by the producer.

Augmented Reality

A technology that superimposes a computer-generated image on a user's view of the real world, thus providing a composite view.

Direct-Response Wholesaling

A type of wholesaling where products are sold directly to retailers or consumers in response to specific requests or orders.

Television Home Shopping Channels

TV channels dedicated to retailing goods directly to consumers through live presentations, offering viewers the opportunity to purchase items from the comfort of their home.