A Negative Externality (That Has Not Been Internalised) Causes the

question 54

Multiple Choice

A negative externality (that has not been internalised) causes the

• A) optimal quantity to exceed the equilibrium quantity.
• B) equilibrium quantity to be either above or below the optimal quantity.
• C) equilibrium quantity to equal the optimal quantity.
• D) equilibrium quantity to exceed the optimal quantity.

---

Definitions:

Environmental Forces

External factors like climate, ecological changes, and natural resources that affect an organization's operations and decision-making.

Dr. Pepper Snapple Group

An American soft drink company that manufactures, markets, and distributes non-alcoholic beverages including Dr. Pepper, 7UP, and Snapple.

Country Time Lemonade

A popular brand of lemonade mix made by Kraft Foods, often associated with the iconic imagery of American summer.

Balancing

The process of ensuring stability or equilibrium in a system or situation.