Assume That Production of a Good Generates External Benefits for Others

question 204

Multiple Choice

Assume that production of a good generates external benefits for others. The equilibrium price of the good will be ____ and the equilibrium quantity ____ for efficient resource allocation.

• A)​too high; too high.
• B)​too high; too low.
• C)​too low; too high.
• D)​too low, too low.

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Definitions:

Positive Emotions

Emotions that are associated with positive experiences and feelings, such as joy, gratitude, and love, contributing to well-being and happiness.

Daily Contemplative Practices

refers to routine activities such as meditation, prayer, or reflective journaling that focus on self-awareness, mindfulness, and spiritual connection.

Religious

Relating to or devoted to religious beliefs or observances.