Suppose External Costs Are Present in a Market Which Results

question 20

Multiple Choice

Suppose external costs are present in a market which results in the actual market price of $84 and market output of 320 units. How does this outcome compare to the efficient, ideal equilibrium?

• A) The efficient price would be higher than $84.
• B) The efficient price would be lower than $84.
• C) The efficient price would also be $84.
• D) The efficient output would be greater than 320 units.

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Definitions:

Motivated By Fear

A motivational approach wherein actions or decisions are driven by the desire to avoid negative outcomes, rather than pursue positive ones.

Style Communicator

Refers to the specific manner or approach an individual uses to convey messages and information, often characterized by personal or cultural influences.

Insecurity

Feelings of uncertainty or anxiety about oneself; lack of confidence.

Accept Criticism

The willingness to receive and constructively respond to feedback or negative assessments of one's work or behavior.