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.

---

Definitions:

Middle Childhood

A developmental stage typically covering the period from about 6 to 12 years old, where children experience major growth in cognitive, physical, and social skills.

Static Reasoning

A characteristic of preoperational thought in which a young child thinks that nothing changes. Whatever is now has always been and always will be.

Concrete Operational

A stage of cognitive development in children, proposed by Piaget, occurring roughly between the ages of 7 and 12, during which children gain a better understanding of mental operations and physical concepts.

Middle Childhood

The developmental stage between early childhood and adolescence, typically from ages 6 to 12, marked by increased cognitive, social, and emotional development.