Competition in the Presence of Negative Externality Will Result in the Following

question 102

Multiple Choice

Competition in the presence of negative externality will result in the following outcome:

• A) the market price will be lower and output will be lower than socially desirable.
• B) the market price will be lower and output will be higher than socially desirable.
• C) the market price will be higher and output will be lower than socially desirable.
• D) the market price output will be the same as socially desirable.

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Definitions:

Assets Due

Typically refers to amounts or assets scheduled for receipt or payment within a predefined period; however, "Due" often relates to liabilities (e.g., accounts payable). NO precise term called "Assets Due" in standard financial terminology without further context.

90-Day Note

A short-term debt instrument that matures in 90 days, typically used for financing immediate needs.

360-Day Year

The 360-day year is used in financial calculations to simplify interest calculations, assuming each month has 30 days.

Maturity Value

The total amount payable to an investor at the end of a fixed term investment, including the principal and any accrued interest.