Suppose External Costs Are Present in a Market Which Results

question 30

Multiple Choice

Suppose external costs are present in a market which results in the actual market price of $50 and market output of 800 units. How does this outcome compare to the efficient, ideal equilibrium?

• A) The efficient outcome would be greater than 800 units.
• B) The efficient outcome would be less than 800 units.
• C) The efficient outcome would also be 800 units.
• D) The efficient price would be less than $50.

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Definitions:

Split Cell

A function in spreadsheet and table applications that divides one cell into multiple cells, either horizontally or vertically.

Merge Cell

A function in spreadsheet software that combines multiple cells into a single cell, often used to create a header that spans several columns.

Diagonal Border

A stylistic feature applied to table cells or sections within a document or spreadsheet, which displays a border cutting diagonally across the cell or section for visual effect or organizational purposes.

AutoFit Contents

A feature that automatically adjusts the size of cells in a spreadsheet to fit their contents.