Suppose the Actions of the Producers of a Good Generate

question 162

Multiple Choice

Suppose the actions of the producers of a good generate an external benefit which results in the actual market price of $30 and market output of 220 units. How does this outcome compare to the efficient, ideal equilibrium?

• A) The efficient price would higher than $30 while the efficient output would be less than 220 units.
• B) The efficient price would be higher than $30 while the efficient output would be greater than 220 units.
• C) The efficient price would be lower than $30 while the efficient output would be less than 220 units.
• D) The efficient price would be lower than $30 while the efficient output would be greater than 220 units.

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Definitions:

Account Balance

The amount of money present in a financial account at any given moment, which can be positive (credits) or negative (debits).

Chart of Accounts

An organized list of all the accounts in a company's general ledger, used for recording and reporting financial transactions.

Journal

A detailed record where all financial transactions of a business are initially recorded before being transferred to accounts in the ledger.

Accounts Payable

Liabilities representing amounts owed to suppliers or creditors for goods and services received that are not yet paid.