Suppose external costs are present in a market which results in the actual market price of $24 and market output of 325 units. How does this outcome compare to the efficient, ideal equilibrium?
a. The efficient outcome would be greater than 325 units.
b. The efficient outcome would be less than 325 units.
c. The efficient outcome would also be 325 units.
d. The efficient price would be less than $24.
B
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The cost that does not change as output changes is
A) total fixed cost. B) average fixed cost. C) total variable cost. D) average variable cost. E) marginal cost.
Price discrimination by sellers usually results in
A) coercing people into buying goods they don't want to purchase. B) coercing people into paying higher prices than they want to pay. C) less total but more net revenue for the seller. D) new and additional opportunities for some buyers.
If the supply of a product decreases by more than the demand increases: a. the price will rise and the quantity traded will fall
b. the price will rise, but the quantity traded could either rise or fall. c. the price will fall, but the quantity traded could either rise or fall. d. the quantity traded will rise, but the price could either rise or fall.
Which group of individuals most likely benefits from rent controls?
A) the unemployed who fail to obtain rental housing B) low-income wage earners who fail to obtain rental housing C) single parent families without savings or other financial assets who fail to obtain rental housing D) upper-income professionals who rent apartments at the price ceiling rate