A Positive Externality Occurs When

question 221

Multiple Choice

A positive externality occurs when

• A)Jack receives a benefit from John's consumption of a certain good.
• B)Jack receives personal benefits from his own consumption of a certain good.
• C)Jack's benefit exceeds John's benefit when they each consume the same good.
• D)Jack's receives a loss from John's consumption of a certain good.

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Definitions:

Poisson Parameter

A parameter of the Poisson distribution that represents the average number of occurrences of an event in a fixed interval of time or space.

Mean Number

The arithmetic average of a set of values, calculated by dividing the sum of all values by the number of values.

Poisson Probability

The probability of a given number of events happening in a fixed interval of time or space when these events occur with a known constant mean rate and independently of the time since the last event.

Binomial Probabilities

The probabilities of achieving a specific number of successes in a fixed number of Bernoulli trials, characterized by only two possible outcomes.