In a Competitive Market, If the Production Process Involves an External

question 33

Multiple Choice

In a competitive market, if the production process involves an external cost, such as pollution of the environment, the market will

• A) produce the economically efficient outcome.
• B) result in a market price that is higher than the efficient one.
• C) register a price that is lower than the efficient one.
• D) result in too little of the good being produced compared to the ideal efficient outcome.

---

Definitions:

Work Very Hard

Exerting a high level of effort and dedication toward achieving goals or completing tasks.

Good Job

A term reflecting satisfaction with one's employment, often considering factors like fulfillment, compensation, and work-life balance.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 1 represents certainty.

Expectancy

Expectancy, in the context of motivation theories, is the belief that one's effort will lead to desired performance and is based on past experience, self-confidence, and the perceived difficulty of the goal.