When a Firm Generates External Benefits, a More Efficient Outcome

question 93

Multiple Choice

When a firm generates external benefits, a more efficient outcome would result if

• A) the firm produced a larger output level.
• B) the firm reduced its output level.
• C) a tax were levied on the firm equal to the dollar amount of the externalities.
• D) price were fixed below the firm's per-unit cost.

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Definitions:

Dual Processing

The principle that information is often simultaneously processed on separate conscious and unconscious tracks in the mind.

Blindsight

A condition in which a person can respond to visual stimuli without consciously perceiving them, typically due to damage to the primary visual cortex.

Parallel Processing

The brain's ability to simultaneously process incoming stimuli of differing quality.

Change Blindness

A perceptual phenomenon where a person does not notice a significant change in a visual scene, often due to a lack of attention.