If an Unregulated Activity Produces a Negative Externality,one Can Infer

question 153

Multiple Choice

If an unregulated activity produces a negative externality,one can infer that the

• A) equilibrium price is greater than the socially optimal price.
• B) demand for the activity is greater than the socially optimal demand.
• C) equilibrium quantity is greater than the socially optimal quantity.
• D) equilibrium quantity is less than the socially optimal quantity.
• E) supply of the activity is less than the socially optimal supply.

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Definitions:

Decline Stage

The period in a product's life cycle marked by a decrease in sales and profits.

Customer Education

Activities and resources provided by businesses to help customers better understand and use their products or services.

High-Learning

Typically a misspelling or misunderstanding, possibly meant to refer to "high-earning" or "high-learning" environments or individuals, for the latter, it means environments or endeavors focused on advanced learning objectives.

Product Life Cycles

The phases a product experiences from its creation and launch into the market, through its period of growth and peak maturity, to its ultimate decrease in relevance.