In Which of the Following Situations Would a Positive Externality

question 75

Multiple Choice

In which of the following situations would a positive externality most likely be involved?

• A)Shawn is sitting at home one day when she gets a telephone call, informing her that she has won $10,000 in a contest she entered three months ago.
• B)There are eight houses in the neighborhood where Rodney lives.Rodney likes nice-looking yards, and last week his neighbors began to beautify their yards.
• C)Willy needs eight hours of sleep each night to feel good.Last night he got eight hours of sleep.
• D)Patrick received an A on a biology exam.He is feeling better about his chances of getting admitted to medical school.

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Definitions:

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the average cost per unit of output decreases with increasing scale.

Monopolist

A sole provider of a particular good or service in a market, possessing the power to control prices and exclude competition.

Price Maker

A firm or entity that has significant control over the price of the goods or services it provides, due to lack of competition.

Big Data

Refers to extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.