Suppose External Benefits Are Present in a Market Which Results

Multiple Choice

Suppose external benefits are present in a market which results in the actual market price of $62 and market output of 3,000 units. How does this outcome compare to the efficient, ideal equilibrium?

A) The efficient price would be higher than $62.
B) The efficient price would be lower than $62.
C) The efficient price would also be $62.
D) The efficient output would be less than 3,000 units.