Suppose External Benefits Are Present in a Market Which Results

question 48

Multiple Choice

Suppose external benefits are present in a market which results in the actual market price of $34 and market output of 126 units. How does this outcome compare to the efficient, ideal equilibrium?

• A) The efficient outcome would be greater than 126 units.
• B) The efficient outcome would be less than 126 units.
• C) The efficient outcome would also be 126 units.
• D) The efficient price would be less than $34.

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Definitions:

Court

A governmental institution where legal disputes are resolved by a judge or a jury.

Courts in Canada

The judiciary system in Canada, which includes various levels of courts such as the Supreme Court of Canada, provincial, and federal courts.

Law of Equity

A body of law that provides remedies and justice not available or insufficient in common law, focusing on fairness and morally sound judgments.

Common Law Courts

The three historical English courts (the Court of Common Pleas, the Court of King’s Bench, and the Exchequer Court), where in theory law was discovered in the customs and traditions of the people.