A Negative Externality or Spillover Cost Occurs When

question 10

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.

---

Definitions:

Enabling Groups

Groups designed to empower employees and enhance their skills for better performance.

Functional Team

A group of individuals who come together based on their expertise in specific functional areas, working collaboratively towards a common goal.

Self-Managing Work Teams

Groups of employees who are responsible for managing themselves and their work processes, including planning, execution, and improvement.

High Command Structures

The topmost level of an organizational or military hierarchy, responsible for strategic decisions and leadership.