If a Negative Externality Exists, __________ in Order for the Socially

question 104

Multiple Choice

If a negative externality exists, __________ in order for the socially optimal output to be reached.

• A)supply needs to increase
• B)supply needs to decrease
• C)demand needs to increase
• D)b and c
• E)none of the above

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Definitions:

Directly Responsible

Bearing immediate accountability for actions, tasks, or outcomes, without intermediary delegation or oversight.

Profit Maximization

The process of increasing a company's profit to the highest possible level through the adjustment of sales, production, and pricing strategies.

Society's Resources

The assets, both tangible and intangible, that are available for use by the members of a society.

Government Intervention

Actions taken by a government to influence or directly regulate economic, social, or other activities within a country.