In a country where only two goods are produced and consumed, the production and consumption of Good X results in external benefits, while the production and consumption of Good Y results in external costs. Would unregulated markets produce too much or too little of Good X and Good Y, compared to the efficient output levels for these products?

Question

Business

River Bender

23 February, 17:37

In a country where only two goods are produced and consumed, the production and consumption of Good X results in external benefits, while the production and consumption of Good Y results in external costs. Would unregulated markets produce too much or too little of Good X and Good Y, compared to the efficient output levels for these products?

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Answers (1)

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Sanaa Jensen · Answer 1

Would unregulated markets produce too much or too little of Good X and Good Y, compared to the efficient output levels for these products?

Explanation:

Good X: Too Little

Good Y: Too Much