The Market Works Efficiently in the Absence of Externalities If

question 39

Multiple Choice

The market works efficiently in the absence of externalities if the good is

• A) rival and excludable.
• B) nonrival and nonexcludable.
• C) rival and nonexcludable.
• D) nonrival and excludable.
• E) rival and either excludable or nonexcludable.

---

Definitions:

Social Dilemmas

Situations in which individual decisions for personal gain lead to outcomes that are suboptimal for the collective group.

Stakeholders

Individuals or groups that have an interest in the decisions and activities of an organization and can be affected by its outcomes.

Inventory

The stock of goods or materials that a business holds for the purpose of resale or production, critical for meeting customer demand and operational needs.

Managing Quality

Involves overseeing operations and processes to ensure that products or services are meeting predefined standards and customer expectations.