When externalities are present in a market ... Omarket equilibrium cannot be reached Othe equilibrium price and quantity are too high Othe equilibrium price in the market is not effcient Oonly the equilibrium quantity is efficient

When externalities are present in a market ... Omarket equilibrium cannot be reached Othe equilibrium price and quantity are too high Othe equilibrium price in the market is not effcient Oonly the equilibrium quantity is efficient

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

When externalities are present in a market ...
Omarket equilibrium cannot be reached
Othe equilibrium price and quantity are too high
Othe equilibrium price in the market is not efficient
Oonly the equilibrium quantity is efficient
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