In the case of spillover benefits or costs

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Reference no: EM13838852

1. A market in which there is an additional transaction that would benefit a buyer, a seller, and any third parties affected by the transaction is called

A. a free market

B. a contestable market

C. an efficient market

D. an inefficient market

E. a lucrative market

2. In the case of spillover benefits or costs,

A. the free market yields the efficient outcome

B. the free market yields an inefficient outcome

C. the free market no longer equates marginal private benefits to marginal private costs

D. the market must be imperfectly competitive

E. none of the above

Reference no: EM13838852

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