If a Good Has an External Benefit, Efficiency Can Be

question 360

Multiple Choice

If a good has an external benefit, efficiency can be achieved by

• A) leaving the market unregulated.
• B) monopolizing the market.
• C) offering a private subsidy on the good equal to the external benefit.
• D) imposing a tax on the good equal to the external benefit.

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Definitions:

Law Of Demand

The claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises

Price

The monetary value assigned to a product or service, determined by various factors including supply and demand, production cost, and market competition.

Quantity

The amount or number of a material or immaterial good that can be measured or counted.

Gourmet Coffee

Gourmet coffee refers to high-quality coffee beans that are often single-origin or specially blended to create a unique and superior taste experience compared to standard coffee.