A Negative Externality Is Said to Exist If

question 13

Multiple Choice

A negative externality is said to exist if:

• A)the private marginal cost exceeds the private marginal benefit.
• B)the producer and the consumer surplus for a particular good are not equal.
• C)a tax imposed on the production of a particular good results in a deadweight loss.
• D)the social costs exceed the private costs.

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Definitions:

Environmental Scanning

Environmental scanning is the process of systematically gathering, analyzing, and managing external information about factors that could impact an organization's ability to succeed.

Competitive Advantage

An attribute or combination of attributes that allows an organization to outperform its competitors, achieved through cost leadership, differentiation, or focus strategies.

Hypercompetition Environment

A market condition characterized by rapid and continuous changes in competitive rules and strategies, leading to aggressive competition that exceeds traditional levels.

Perfect Competition Environment

A theoretical market structure where all companies sell an identical product, market share does not influence prices, and all participants are price takers in a perfectly competitive market.