The Market Failure of External Cost Is Most Likely to Result

question 82

Multiple Choice

The market failure of external cost is most likely to result if Peanuts 'R' Us:

• A) keeps secret a discovery that excessive consumption of peanut butter causes nearsightedness.
• B) discards broken peanut shells on to an adjacent recreational area in the production of peanut butter.
• C) is subject to performance standard regulations by the PBRC (Peanut Butter Regulatory Commission).
• D) develops a new peanut butter processing machine that enhances competition.

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Definitions:

Type A Personality

A personality style marked by a strong competitive orientation, impatience and urgency, and anger and hostility.

Transient Mental Stress

Refers to temporary states of emotional or psychological stress that come and go, not lasting permanently.

Subsequent Heart Attack

A heart attack that occurs after a person has already experienced one, indicating recurrent cardiovascular issues.

Atherosclerosis

A disease in which plaque builds up inside the arteries, leading to reduced blood flow that can cause heart attacks or strokes.