External benefits cause the market to:
a. underallocate resources. b. be more efficient.
c. set excessively high prices. d. have persistent shortages.
Question 2
Why do negative externalities like pollution result in inefficiency?
a. Because producers artificially restrict their supply.
b. Because producers ignore the external costs they impose on third-parties.
c. Because producers manufacture more goods than people can afford to buy.
d. Because producers will receive an unequal distribution of profits.
The breast, cutaway view showing both internal and external features.
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Modern commercial fishing is highly efficient
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