A Firm Is Generating Detrimental Externalities When

question 160

Multiple Choice

A firm is generating detrimental externalities when

• A)MSC is less than MPC.
• B)MSC is the same as MPC.
• C)MSC is greater than MPC.
• D)MPC includes some incidental costs.

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Definitions:

Generalized Adjustment Syndrome

A model outlining the body's short-term and long-term reactions to stress, including stages of alarm, resistance, and exhaustion.

Parasympathetic

Part of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles.

Sympathetic

Relating to the sympathetic nervous system, which is part of the autonomic nervous system responsible for the body's "fight or flight" response.

Fight-or-Flight

A physiological reaction to perceived harmful events, attacks, or threats to survival, preparing the body to either confront or flee from the situation.