If a Negative Externality Exists,__________ for the Socially Optimal Output

question 61

Multiple Choice

If a negative externality exists,__________ for the socially optimal output to be reached.

• A) supply needs to increase
• B) supply needs to decrease
• C) demand needs to increase
• D) b and c
• E) none of the above

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Definitions:

Complimentary

Given for free or without charge, often as a gesture of goodwill or as part of a promotional offer.

Customer Benefit

The value or advantage that a customer gains from using a product or service, leading to satisfaction or resolving a problem.

Product

An item or service offered by a company to customers, which can be physical (goods) or intangible (services).

RedMax Brand

A brand known for its outdoor power equipment, such as leaf blowers, trimmers, and chainsaws, targeting both professional and residential use.