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.

---

Definitions:

Focus Groups

A research method in which a small, diverse group of people are gathered to discuss and give feedback on a particular subject, product, or policy.

Single System Designs

A research design tailored to evaluate the effectiveness of an intervention or treatment on a single subject or system over time.

AB Designs

A basic type of research design that compares two groups, A and B, to assess the effect of an intervention or treatment.

Withdrawal Designs

Experimental designs in behavioral research where an intervention is removed to assess its effects on the subject's behavior.