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 $34 and market output of 126 units. How does this outcome compare to the efficient, ideal equilibrium?

A) The efficient outcome would be greater than 126 units.
B) The efficient outcome would be less than 126 units.
C) The efficient outcome would also be 126 units.
D) The efficient price would be less than $34.