If There Are No External Costs or Benefits, No Price

question 273

Multiple Choice

If there are no external costs or benefits, no price or quantity regulations, no taxes or subsidies, and the good is not a public good or a common resource, then efficiency is

• A) achieved when a monopoly produces the good.
• B) achieved when the good is produced in a competitive market.
• C) achieved when the amount of output exceeds the amount produced in a competitive market.
• D) unrelated to the amount produced in a competitive market.

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Definitions:

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, often observed after group discussions.

Additional Information

Supplementary data or facts that provide further insight or context to a subject matter.

Normative Influence

Social influence leading individuals to conform in order to be accepted or liked by a group, following the group's norms and expectations.