Which of the Following Is True If a Negative Externality

question 39

Multiple Choice

Which of the following is true if a negative externality is associated with the sale of gasoline

• A) Third parties other than the buyers and sellers of gasoline receive benefits.
• B) Third parties other than the buyers and sellers of gasoline bear costs.
• C) The marginal social cost of gasoline exceeds its marginal private cost.
• D) both b and c

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Definitions:

Inventory Control

The management practice of overseeing and regulating the ordering, storing, and use of components that a company uses in the production of the items it sells.

Approved Vendor

A supplier who has been vetted and meets a company's criteria for quality, reliability, and business ethics, and is thus authorized to supply goods or services.

Weighted Average

A calculation that takes into account the varying weights or importance of different elements in a data set, often used in accounting and inventory management.

Inventory Units

The quantity of individual items or products that a company holds in stock at any given time.