A Positive Externality Exists When

question 174

Multiple Choice

A positive externality exists when

• A)marginal social costs are less than marginal private costs.
• B)marginal social costs are greater than marginal private costs.
• C)marginal social benefits are less than marginal private benefits.
• D)marginal social benefits are greater than marginal private benefits.
• E)a and d

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Definitions:

Stakeholders

Individuals or groups that have an interest in any decision or activity of an organization, including but not limited to employees, customers, suppliers, and shareholders.

Morally Justifiable

Actions or behaviors that can be defended or supported on ethical or moral grounds, deemed acceptable according to principles of right and wrong.

Promises And Commitments

Declarations or assurances that one will do something or that a particular thing will happen.

Moral Courage

The ability to act ethically and stand up for what is right, even in the face of adversity or moral dilemma.