When Farmers Raise Hogs, There Are a Number of External

question 156

Multiple Choice

When farmers raise hogs, there are a number of external costs. In particular, hogs generate methane gas. Without government regulation, the equilibrium price and quantity of pigs raised means that:

• A) too few hogs will be raised.
• B) the price will be less than the marginal social cost.
• C) the price will be less than the marginal benefit.
• D) the price will be less than the marginal cost to hog farmers.

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Definitions:

Situational Model

A theory that suggests the effectiveness of a leadership style is contingent upon the situation or the environment in which it is applied.

Development Level

The degree of competence and commitment of an individual or group in performing specific tasks.

Path-goal Theory

A leadership theory that suggests the leader's job is to assist followers in attaining their goals and to provide direction or support needed to ensure their goals are compatible with the organization’s objectives.

Participative Behavior

A leadership approach that involves team members in decision-making processes and problem-solving activities.