If a Negative Externality Prevails in a Competitive Market for Air

question 6

Multiple Choice

If a negative externality prevails in a competitive market for air travel, then:

• A) more than the efficient amount of annual air travel will be consumed in equilibrium.
• B) less than the efficient amount of annual air travel will be consumed in equilibrium.
• C) the marginal social cost of air travel will exceed its marginal social benefit in equilibrium.
• D) both a and c
• E) both b and c

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Definitions:

Synergy

The interaction or cooperation of two or more organizations, substances, or other agents to produce a combined effect greater than the sum of their separate effects.

Similar Thinking Patterns

The tendency of individuals to have comparable approaches to reasoning, problem-solving, and interpreting information.

Purposeful Action

An intentional act with a clear goal or objective in mind.

Sustained Improvement

Continuous and consistent enhancement in performance, quality, or efficiency over time.