When a Business Produces a Product That Creates External Costs

question 205

Multiple Choice

When a business produces a product that creates external costs

• A)the company produces a level of output larger than would be produced without the external cost.
• B)the company produces a level of output smaller than would be produced without the external cost.
• C)the company produces a level of output which would be the same as it would produce without the external cost.
• D)the market provides the efficient level of output even with the existence of the external cost.

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Definitions:

Chinese Suppliers

Companies or individuals in China that provide goods or services to other businesses, often noted for their cost-effectiveness in the global supply chain.

Defiance

The act of openly resisting or refusing to obey authority or regulations.

Job Dissatisfaction

The feeling of unhappiness or discontent with one's job due to various factors such as working conditions, salary, or job role.

Performance

The act of performing a task or function, often measured against standards such as speed, accuracy, or efficiency.