An Inefficiency Can Arise in the Provision of Public Good

question 6

Multiple Choice

An inefficiency can arise in the provision of public good:

• A)Because the good is non-rival.
• B)As a private sector firm cannot enforcement payment for the good.
• C)Because the marginal benefit curve for society is the vertical summation of individual MB curves.
• D)a and C

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Definitions:

Management by Objectives

A strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees.

Management by Exception

A management strategy where only significant deviations from set standards and performance are addressed, streamlining decision-making.

Management by Reinforcement

A leadership approach that emphasizes the use of positive reinforcements to shape behavior and achieve desired outcomes.

Negotiations

The process of discussing terms and conditions between parties with the aim of reaching an agreement or compromise.