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:

Phobic Disorder

is a type of anxiety disorder characterized by an excessive and irrational fear of an object, situation, or activity that poses little to no actual danger.

Chemical Imbalance

A theory suggesting that mental health conditions are associated with changes in the brain's chemical systems.

Biological Model

Model of explaining thinking or behavior as caused by biological changes in the chemical, structural, or genetic systems of the body.

Psychiatric Model

a framework used in psychiatry that outlines the theories and principles for understanding, diagnosing, and treating mental disorders.