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:

Healthcare Common Procedural Coding System

A set of medical codes used to report medical, surgical, and diagnostic services and procedures to healthcare insurance providers for the purpose of billing.

Current Procedural Terminology

A set of codes, guidelines, and descriptors used to describe medical, surgical, and diagnostic services provided by healthcare professionals.

American Medical Association

A professional association for physicians in the United States aimed at advancing public health and ethical standards in the medical profession.

American Hospital Formulary

A comprehensive listing of medications and related information used by hospitals, aimed at promoting effective and safe use of drugs.