Suppose External Benefits Are Present in a Market Which Results

question 117

Multiple Choice

Suppose external benefits are present in a market which results in the actual market price of $62 and market output of 3,000 units. How does this outcome compare to the efficient, ideal equilibrium?

• A) The efficient price would be higher than $62.
• B) The efficient price would be lower than $62.
• C) The efficient price would also be $62.
• D) The efficient output would be less than 3,000 units.

---

Definitions:

Genuine Impasse

A situation in negotiations where parties are unable to reach an agreement, often due to irreconcilable differences.

Perceived Differences

The recognition or belief in the existence of distinctions between entities or ideas.

Comparison Groups

Groups used as a benchmark or standard of comparison to evaluate the outcomes or processes of a particular group, often in research or assessments.

Active Listening

A communication technique that involves giving full attention to the speaker, understanding their message, and responding thoughtfully.