In the Case of Either a Positive or a Negative

question 129

Multiple Choice

In the case of either a positive or a negative externality,it will always be true that,relative to the social optimum,the

• A) price will be too low.
• B) price will be too high.
• C) quantity will be too large.
• D) demand will be too small.
• E) supply will be too great.

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Definitions:

Monopolies

Situations or markets in which a single entity controls a significant portion of or all the supply of a particular product or service, thus limiting or eliminating competition.

Command-and-Control

A management style characterized by strict authority, where decisions are made at the top and communicated down through the hierarchy.

Management Model

A theoretical framework or tool that outlines the strategies, practices, and procedures used to manage an organization effectively.

General Guidelines

Broad and nonspecific instructions or rules designed to guide actions or behavior in various situations.