If the Marginal Private Cost of a Good Is Greater

question 8

Multiple Choice

If the marginal private cost of a good is greater than its marginal social cost, then the good is said to have _____.

• A) a positive externality
• B) economies of scale
• C) Pareto efficiency
• D) a dead-weight loss

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Definitions:

Matrix Structure

An organizational structure that assigns specialists from different functional departments to work on one or more projects.

Divisional Structure

A divisional structure is an organizational setup in which the company is divided into semi-autonomous units or divisions, each focusing on a specific product line, market sector, or geographical region.

Network Structure

An organizational layout where companies are interconnected, allowing for decentralized communication and flexibility.

Matrix Structure

An organizational structure that combines two or more types of structures, typically functional and product-based, with the aim of leveraging the advantages of both.