Suppose external costs are present in a market which results in the actual market price of $70 and market output of 150 units. How does this outcome compare to the efficient, ideal equilibrium?

a. The efficient price would be higher than $70.
b. The efficient price would be lower than $70.
c. The efficient price would also be $70.
d. The efficient output would be greater than 150 units.


A

Economics

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Economics