All of the Following Statements Are True Except

question 2

Multiple Choice

All of the following statements are true except:

• A)An externality is a cost or a benefit that affects someone other than the seller or the buyer of a good.
• B)When an electric utility does not consider the cost of pollution when it decides how much power to produce,the result is overproduction.
• C)An electric utility creates an external cost by burning coal.
• D)All externalities create overproduction.
• E)An external cost creates overproduction.

---

Definitions:

Planned Objectives

Strategic goals set by a business or organization to guide its operations and decisions.

Controllable Margin

The portion of profit or margin that can be directly influenced by managing the controllable costs in a business.

Operating Results

The financial outcomes of a company's core business activities, excluding non-operating revenues and expenses, reflecting its operational efficiency.

Required Rate of Return

The minimum annual percentage return an investor expects to earn when investing in a particular asset or project.