In Order to Bring a Market to Its Efficient Outcome

question 14

Multiple Choice

In order to bring a market to its efficient outcome when a negative externality is present,the government could:

• A)limit total consumption to the efficient quantity.
• B)tax the affected party the value of the external cost.
• C)limit the price to the efficient level.
• D)Any of these would bring the market to its efficient level.

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Definitions:

Greater Than

Greater Than is a mathematical symbol (>) used to indicate that the value on the left side is larger than the value on the right side.

Undifferentiated Targeting Strategy

A marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups.

Marketers

Professionals involved in the process of promoting, selling, and distributing a product or service.

Pencils

Writing instruments made of graphite (or a similar substance) encased in wood or a mechanical holder, used for drawing or writing.