In the Presence of Positive Externalities, a Free Market Will

question 79

Multiple Choice

In the presence of positive externalities, a free market will choose a price which is too ____ and produce an output which is too ____ compared with the social optimum.

• A) high; low
• B) low; low
• C) high; high
• D) low; high

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Definitions:

Competing Commitments

Conflicting obligations or tasks that demand a person's time and attention, making it challenging to fulfill all effectively.

Team Members

Individuals who belong to a group collaborating towards common objectives or projects with shared responsibilities.

Incremental Changes

Small, gradual adjustments made in processes, policies, or strategies intending to improve or optimize outcomes over time without drastic shifts.

Nadler-Tushman Model

A framework for diagnosing organizational issues, focusing on the interplay between structure, processes, and people within a company to identify gaps and alignment for optimal performance.