Which of the Following Is Most Likely to Produce a Negative

question 109

Multiple Choice

Which of the following is most likely to produce a negative externality?

• A) Cancer research
• B) Hospitals
• C) Highways
• D) Dams
• E) Cigarettes

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Definitions:

Experimental Evidence

Data or information obtained through controlled scientific experiments, often used to support or refute theories and hypotheses.

Profit-maximizing

The process by which a firm determines the price and output level that returns the greatest profit, where marginal costs equal marginal revenues.

Discriminate

To differentiate or make distinctions between individuals or groups based on characteristics such as race, gender, age, or other criteria, often leading to unfair treatment.

Competitive Firms

Businesses that operate in a market where they must compete with other firms for customers, characterized by the inability to control market prices.