If the Production of a Good Involves Positive Externalities,________

question 56

Multiple Choice

If the production of a good involves positive externalities,________.

• A) the market price of the good is higher than its optimal price
• B) the market price of the good is lower than its optimal price
• C) the average cost of production of the good in the long run is zero
• D) the variable cost of production of the good is zero

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Definitions:

Network Design

The planning and optimization of a company's supply chain network's structure and operations for efficient production, distribution, and fulfillment.

Supply Chain Network

The interconnected system of organizations, people, technology, activities, information, and resources involved in moving a product or service from supplier to customer.

Competitive Strategy

A long-term plan of action designed to enable a business to gain a competitive advantage over its rivals in the industry.

Linear Programming Formulation

A mathematical method used to find the best possible outcome or solution from a given set of parameters or list of requirements, which are linear in nature.