In the Absence of Externalities,what Can Be Said About the Invisible

question 72

Multiple Choice

In the absence of externalities,what can be said about the invisible hand of the marketplace

• A)It leads to a market outcome that maximizes total benefit to society.
• B)It is unable to resolve inherent disagreements between parties in the market system.
• C)It induces people to act in a manner inconsistent with self-interest.
• D)It increases the transaction costs so reaching an efficient outcome is especially difficult.

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Definitions:

Total Overhead Applied

The total amount of overhead costs allocated to products or services based on a predetermined overhead rate.

Forming Department

A specific area or segment within a manufacturing facility where raw materials are transformed into intermediate or finished products through a series of processes.

Assembly Department

A segment of a manufacturing company where components are assembled into final products, often involving workers and machinery in a line or cell formation.

Estimated Total Overhead

The projected total of all indirect costs associated with production, including utilities, rent, and salaries of support staff.