A Competitive,unregulated Market Would

question 113

Multiple Choice

A competitive,unregulated market would

• A) produce too much pollution because pollution is an external cost.
• B) produce too little education because education has an external benefit.
• C) fail to achieve equilibrium if there are externalities present.
• D) Both answers A and B are correct.
• E) Both answers B and C are correct.

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Definitions:

Accounts Receivable

The money owed to a business by its clients or customers for goods or services provided on credit.

Consulting Work

Professional services provided by experts to advise businesses in various areas of expertise.

Revenue

The total income generated from the sale of goods or services, before any costs or expenses are deducted.

Assets

Economic resources owned by a business or individual that are expected to bring future benefits.