Suppose the Actions of the Producers of a Good Generate

question 32

Multiple Choice

Suppose the actions of the producers of a good generate an external benefit which results in the actual market price of $15 and market output of 614 units. How does this outcome compare to the efficient, ideal equilibrium?

• A) The efficient price would higher than $15 while the efficient output would be less than 614 units.
• B) The efficient price would be higher than $15 while the efficient output would be greater than 614 units.
• C) The efficient price would be lower than $15 while the efficient output would be less than 614 units.
• D) The efficient price would be lower than $15 while the efficient output would be greater than 614 units.

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Definitions:

Sphygmomanometer

A device used to measure blood pressure, consisting of an inflatable cuff to restrict blood flow, and a mercury or aneroid manometer to measure the pressure.

Sphygm/o

A prefix related to the pulse, used in terms denoting something measured by the pulse.

Arterial Blood Pressure

The pressure within arteries, which is vital for circulating blood throughout the body.

Sphygmomanometer

A sphygmomanometer is a device used to measure blood pressure, typically involving a cuff that is placed around the arm.