A Firm Is Generating Detrimental Externalities When

question 160

Multiple Choice

A firm is generating detrimental externalities when

• A)MSC is less than MPC.
• B)MSC is the same as MPC.
• C)MSC is greater than MPC.
• D)MPC includes some incidental costs.

Identify management styles and theories applicable to leading nonprofit organizations.

Analyze the demographics and social factors influencing volunteerism.

Understand the importance of formal volunteer policies and their impact on nonprofit effectiveness.

Distinguish between intrinsic and extrinsic motivation and their application in nonprofit organizations.

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Definitions:

Artificially Scarce

A situation where the supply of a good is limited by factors other than its physical scarcity, often due to regulatory or monopolistic practices.

Excludable

Referring to a good, describes the case in which the supplier can prevent those who do not pay from consuming the good.

Nonrival

A property of a good or service where its consumption by one individual does not reduce availability for others, often found in public goods.

Private Good

A good that is both excludable and rivalrous, meaning it can only be used by one person at a time, and access to it can be restricted.