A Negative Externality or External Cost Occurs When

question 63

Multiple Choice

A negative externality or external cost occurs when:

• A)firms fail to achieve allocative efficiency.
• B)firms fail to achieve productive efficiency.
• C)price exceeds marginal cost.
• D)the total cost of producing a good exceeds the costs borne by the producer.

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Definitions:

Selection Technique

A method or process used in hiring, such as interviews or tests, to identify the most suitable candidates for a position based on their skills, experience, and attributes.

Consistency

The quality of always behaving or performing in a similar way, or of always happening in a similar way.

Unstructured

Lacking a defined organization, format, or structure, often leading to unpredictability in processes or outcomes.

Formal

Pertains to actions, processes, or appearances that are done in accordance with established rules, conventions, or etiquette.