A Positive Externality Exists When

question 117

Multiple Choice

A positive externality exists when

• A)a person's or group's actions cause a benefit that is felt by others.
• B)a person's or group's actions cause a cost that is felt by others.
• C)the market output is greater than the socially optimal output.
• D)the socially optimal level of output is equal to the market output.

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Definitions:

Sophisticated

Characterized by a high level of complexity, refinement, or development, often resulting from extensive experience or knowledge.

Product Innovation

The process of creating new products or significantly improving existing ones, often to meet new customer needs or market demands.

Competitive Advantage

The attribute or set of attributes that allows an organization to outperform its competitors, providing greater value to its customers or operating more efficiently.

Flexibility

The quality of being able to adapt to new, different, or changing requirements and situations.