Consider a good produced in a competitive market that has external costs.

Consider a good produced in a competitive market that has external costs. Too ______________ of the good will be produced for economic efficiency and the price will be ______________ than the price that will convince consumers to purchase the efficient amount.

A. Little; lower

B. Little; higher

C. Much; lower

D. Much; higher

I feel like its either (C. Much; lower) or (A. Little; lower) but can’t really be sure which one is more correct. Any help would be appreciated.

Show more 

Looking for a Similar Assignment? Our Experts can help. Use the coupon code SAVE30 to get your first order at 30% off!