A Negative Externality or Spillover Cost Occurs When

question 136

Multiple Choice

A negative externality or spillover cost occurs when

• A) firms fail to achieve allocative efficiency.
• B) firms fail to achieve productive efficiency.
• C) the price of a good exceeds the marginal cost of producing it.
• D) the total cost of producing a good exceeds the costs borne by the producer.

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Definitions:

Mood

A temporary state of mind or feeling that can affect an individual's perception, behavior, and cognitive functions.

Appetite

The natural desire to satisfy a bodily need, especially for food.

Serotonin

A neurotransmitter that contributes to feelings of well-being and happiness.

Black Widow Spider

A venomous spider known for the female's distinctive black color and red hourglass-shaped mark on its abdomen.