When a Negative Consumption Externality Is Present in a Market

question 34

Multiple Choice

When a negative consumption externality is present in a market, total surplus will be _______ if buyers only consider _______ costs.

• A)higher; private
• B)lower; private
• C)lower; social
• D)unchanged; social

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Definitions:

Organization

An entity composed of individuals working together towards a common goal, characterized by structured systems and processes to coordinate efforts efficiently.

Encourages

Motivates or inspires someone to take action or persist in an effort.

Trompenaars

A Dutch organizational theorist known for his work on cross-cultural communication and international management.

Organizational Cultural Classifications

Systems for categorizing the values, beliefs, and behaviors that define the unique social environment of an organization.