What Will a Market That Experiences a Positive Externality Also

question 77

Multiple Choice

What will a market that experiences a positive externality also experience

• A)a smaller market output and a higher market price than is optimal
• B)a greater market output and lower market price than is optimal
• C)a greater market output and higher market price than is optimal
• D)a smaller market output and lower market price than is optimal

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Definitions:

Corporate Tax Rate

The tax rate imposed on the net income of a corporation by the government.

Tax Shield

The reduction in income taxes that results from taking an allowable deduction from taxable income, such as the interest on debt.

Stand-Alone

Describes something that operates independently or can function without the need for external support.

Bottom-Up

An approach that starts at the most specific, detailed level and works up to a broader perspective, especially in planning and analysis.