If Production of a Good Creates Negative Externalities,then the Market

question 5

Multiple Choice

If production of a good creates negative externalities,then the market

• A)will under produce it
• B)will over produce it
• C)must be perfectly competitive
• D)must be constrained by barriers to entry
• E)will produce the most efficient quantity

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Definitions:

R&D Expenditure

R&D Expenditure refers to the funds allocated by firms or governments towards research and development to foster innovation and growth.

Scientific Characteristics

The inherent or distinctive attributes and features of scientific inquiry and methodology, such as objectivity, empirical evidence, and systematic experimentation.

Industry Structure

The composition and characteristics of firms in a particular market, determining the nature of competition and pricing strategies.

R&D Spending

Expenditures dedicated to research and development activities by businesses or governments aiming to innovate and improve products or services.