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:

Reconciliation

The process of restoring friendly relations between individuals or groups after a conflict or a period of estrangement.

Arrested Development

A state in which development has stopped prematurely, often used in psychological contexts to describe individuals or in biology to discuss growth processes.

Orangutan Males

The male members of the orangutan species, known for their distinctive reddish-brown hair, large size, and solitary nature, primarily found in the rainforests of Borneo and Sumatra.

Adaptive Significance

The importance of a trait, behavior, or characteristic in promoting the survival and reproductive success of an organism.