If a Profit-Maximizing Competitive Firm ________ Compensate Society for a Negative

question 75

Multiple Choice

If a profit-maximizing competitive firm ________ compensate society for a negative externality, the firm will choose to produce where price equals marginal cost.

• A) does not have to
• B) is pressured to
• C) voluntarily chooses to
• D) is legally bound to

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Definitions:

Bill Of Material

An itemized inventory necessary for the production process, detailing all components and materials required.

Kit For Production

A set of parts or components that are packaged together and used in the manufacturing process to create a final product.

"Pseudo"

A prefix used to describe something that is false or pretend; not genuine.

Engineering Change Notice

A document used in engineering and manufacturing that outlines modifications to a product's design or manufacturing process.