The Market Failure of External Cost Is Most Likely to Result

question 82

Multiple Choice

The market failure of external cost is most likely to result if Peanuts 'R' Us:

• A) keeps secret a discovery that excessive consumption of peanut butter causes nearsightedness.
• B) discards broken peanut shells on to an adjacent recreational area in the production of peanut butter.
• C) is subject to performance standard regulations by the PBRC (Peanut Butter Regulatory Commission).
• D) develops a new peanut butter processing machine that enhances competition.

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Definitions:

Satisfied Need

A psychological or physiological requirement that has been successfully fulfilled, leading to a state of contentment or satisfaction.

Psychological Needs

Essential components for mental well-being, including feeling loved, secure, and respected, that influence behaviors and motivation.

Social Values

Social values are the principles and beliefs held by a society that shape behaviors, guide ethical decisions, and form the foundation of cultural norms.

Stage Fright

Anxiety or fear experienced before or during a public performance or presentation.