When Production of a Good Results in an External Cost,the

question 170

Multiple Choice

When production of a good results in an external cost,the unregulated competitive market equilibrium quantity is

• A) the efficient level of output.
• B) greater than the efficient level of output.
• C) not zero but is less than the efficient level of output.
• D) unattainable.
• E) zero.

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Definitions:

Perfectly Competitive

Perfectly Competitive refers to a theoretical market structure characterized by a complete lack of economic friction, infinite buyers and sellers, and a perfectly homogeneous product.

Standardized

Establishing uniform standards or norms for a process, product, or system to ensure consistency and comparability across different instances.

Advertising

The profession or act of creating promotional content for commercial goods or services.

Standardized Product

Goods that are uniform in quality and specifications, enabling them to be interchangeable with similar products from other producers.