Exhibit 31-4 -Refer to Exhibit 31-4.If a Negative Externality Exists,then the External

question 36

Multiple Choice

Exhibit 31-4

-Refer to Exhibit 31-4.If a negative externality exists,then the external costs associated with the negative externality equal the distance between points __________,and the socially optimal output is __________.

• A) A and C; Q₂
• B) D and B; Q₁
• C) C and B; Q₂
• D) A and B; Q₂
• E) none of the above

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Definitions:

Throughput

The rate at which a system generates its products or services over a given period of time.

Facility

A physical or virtual location where business operations occur, such as a factory, warehouse, office, or even software platforms.

Period of Time

A length or duration of moments which is measured in terms of seconds, minutes, hours, days, months, or years.

Capacity Decision

A determination made regarding the amount of production resources needed to meet expected demand.