When a Firm Generates External Benefits, a More Efficient Outcome

question 93

Multiple Choice

When a firm generates external benefits, a more efficient outcome would result if

• A) the firm produced a larger output level.
• B) the firm reduced its output level.
• C) a tax were levied on the firm equal to the dollar amount of the externalities.
• D) price were fixed below the firm's per-unit cost.

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Definitions:

Job Characteristics

Attributes of a job that affect an employee's attitudes and behaviors, such as task variety, autonomy, and feedback.

Hindering Job Demands

Tasks or responsibilities at work that can impede an individual's ability to achieve their goals or perform at their best.

Physical

Relating to the body or material things, as opposed to the mind or spirit.

Cognitive

Relating to the mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.