When Externalities Are Present

question 104

Multiple Choice

When externalities are present,

• A) suppliers will refuse to produce desired goods and services.
• B) this indicates that property rights are well-defined and enforced.
• C) competitive market outcomes may be inconsistent with ideal economic efficiency.
• D) competitive markets will generally achieve ideal economic efficiency.

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Definitions:

Competitive Advantage

A condition or circumstance that places a company in a superior business position compared to its competitors, often resulting from unique resources, capabilities, or strategies.

Advantage

A favorable or beneficial condition, circumstance, or position that improves one's ability to achieve success.

Competitors

Entities that compete within the same market, offering similar products or services to the same customer base.

Competitive Advantage

Competitive advantage occurs when a business possesses a unique feature, capability, or position that allows it to outperform competitors.