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If There Are No Externalities, Producing Where Price Is Greater

question 7

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If there are no externalities, producing where price is greater than marginal cost is inefficient because for every unit produced, consumers derive benefits that are less than the cost of the resources needed to produce it.


Definitions:

Trend Indicators

Technical analysis tools used to identify and follow the direction of market or asset price trends.

Moving Average

A statistical measure used in analyzing time series data, specifically to smooth out short-term fluctuations and highlight longer-term trends.

Market Momentum

The tendency of a market to continue moving in a particular direction over time, often influenced by investor sentiment and recent price trends.

TRIN Statistic

A technical analysis indicator that compares advancing and declining stock issues and volumes, used to determine overall market sentiment.

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