Which of the Following Statements Is True

question 112

Multiple Choice

Which of the following statements is true?

• A)When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will certainly be for the worse.
• B)When production of a good yields negative externalities but output is currently at the market level, then a change in output to the socially optimal level will cause benefits to increase by an amount greater than costs will increase.
• C)When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will cause benefits to increase by an amount less than costs will increase.
• D)When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will be a net change for the better.

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Definitions:

Forcing Style

A conflict resolution approach where one party imposes its will on another, disregarding the concerns and interests of the other party.

Goal Incompatibility

Occurs when the objectives or aims of individuals or groups interfere with one another, potentially causing conflict.

Different Departments

Distinct organizational units within a company, each specialized in specific functions or tasks.

Opportunity

A set of circumstances that makes it possible to do something or for something to happen.