Externalities Are a Problem Only If

question 66

Multiple Choice

Externalities are a problem only if:

• A) decision makers do not take them into account
• B) the externalities impose a cost
• C) all firms are monopolistic
• D) all firms are perfectly competitive

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Definitions:

Regression Analysis

A statistical method used to examine the relationship between a dependent variable and one or more independent variables.

Independent Variable

A variable in an experiment or study that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Dependent Variable

A variable in an experiment or model that is expected to change in response to changes in the independent variable.

Regression Analysis

Regression Analysis is a statistical technique for estimating the relationships among variables, often used to determine how dependent variables are influenced by one or more independent variables.