When a Positive Externality Exists, the Equilibrium Quantity That Emerges

question 181

Multiple Choice

When a positive externality exists, the equilibrium quantity that emerges from a competitive market is

• A)too high.
• B)too low.
• C)just right.
• D)sometimes too high and sometimes too low.
• E)zero.

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Definitions:

Independent Self-Starter

An individual who is motivated and able to initiate tasks and projects on their own without needing direct supervision.

Fraudulent Conversion

The unauthorized taking or use of someone else’s property by a person who is in lawful possession of it, amounting to theft.

Exclusive Elements Customer

A strategy or feature in a product or service that is designed to attract a specific segment of customers by offering unique benefits.

Financial Difficulty

A situation where an individual or organization struggles to manage their finances and meet their financial obligations.