Internalising a Positive Production Externality Will Cause the Demand Curve

question 127

Multiple Choice

Internalising a positive production externality will cause the demand curve faced by an industry to:

• A)shift to the right
• B)shift to the left
• C)become more elastic
• D)remain unchanged

Understand the characteristics of competitive price-taker markets.

Identify the conditions under which a firm should continue operating or shut down in the short run.

Calculate a firm’s total revenue and total cost at its profit-maximizing level of output.

Analyze the implications of market price changes on firm’s profit-maximizing output and decision to stay in business.

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Definitions:

Selfless Action

An act performed with no expectation of reward or recognition, often motivated by a desire to help or benefit others.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Dissenting Engineers

Engineers who disagree with the majority opinion within their professional community, often raising ethical, safety, or procedural concerns.

Space Shuttle Challenger

The NASA space shuttle that tragically broke apart shortly after its launch on January 28, 1986, leading to the death of all seven crew members.