Positive Externalities Arise When

question 140

Multiple Choice

Positive externalities arise when

• A) the production of a good generates benefits that spill over to third parties.
• B) a monopoly is regulated.
• C) tax rates are reduced.
• D) a monopoly is shut down.

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Definitions:

Materials

Substances or components that are used in the manufacturing process to create products.

Route Sheet

A document detailing the operations, materials, and sequence of work required to manufacture a part or assembly, guiding the production process.

Sequence of Operations

The specific order in which tasks or activities must be carried out to complete a process or manufacture a product efficiently.

Component

An individual part or element that, when combined with others, forms a complex product, system, or assembly.