If there are no externalities a competitive market achieves economic efficiency. If there is a negative externality, economic efficiency will not be achieved because too much of the good will be produced. a deadweight loss will occur that is equal to the area under the demand curve for the good. too little of the good will be produced. economic surplus is maximized.

If there are no externalities a competitive market achieves economic efficiency. If there is a negative externality, economic efficiency will not be achieved because too much of the good will be produced. a deadweight loss will occur that is equal to the area under the demand curve for the good. too little of the good will be produced. economic surplus is maximized.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section7.1: Consumer Surplus

Problem 1QQ

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