When Negative Externalities Are Present in a Market,it Implies That

question 179

Multiple Choice

When negative externalities are present in a market,it implies that

• A) the market price is too low to achieve optimum social surplus.
• B) the market price is too high to achieve optimum social surplus.
• C) the market price is just right to achieve optimum social surplus.
• D) the market price should be lowered further to achieve optimum social surplus.
• E) production should be increased to achieve optimum social surplus.

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Definitions:

Presenting Bad News

The careful and considerate communication of unfavorable news or feedback.

State Law

Legal provisions enacted by a state's legislative body that govern the behavior of residents and organizations within that state's borders.

Broken Seal

A condition indicating that a seal or closure preventing access or contamination has been compromised or damaged.

Indirect Claim Message

Communication that presents a request or claim in a less direct manner, often to soften the impact or be polite.