When Negative Externalities Are Present in a Market

question 214

Multiple Choice

When negative externalities are present in a market

• A)private costs will be greater than social costs.
• B)social costs will be greater than private costs.
• C)only government regulation will solve the problem.
• D)the market will not be able to reach any equilibrium.

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Definitions:

Sales Differential

Sales differential is the difference in sales volume between a company’s actual sales and a predetermined benchmark, such as past sales performance or market expectations.

Core Value

Fundamental beliefs or principles that guide an organization's actions and decision-making.

IBM

International Business Machines Corporation, a global technology company known for its computer hardware, software, and IT services.

Planning Gap

The difference between future desired performance and the projection of future performance, if current operations continue, often leading to the development of strategies to bridge the gap.