What Will a Positive Externality Cause a Market to Produce

question 209

Multiple Choice

What will a positive externality cause a market to produce

• A)more than is socially desirable
• B)more than is market optimal
• C)less than is socially desirable
• D)less than is market optimal

---

Definitions:

Business Analysis

The practice of identifying business needs and determining solutions to business problems, often through analyzing data and processes.

Economic Analysis

The study or evaluation of the economic aspects of an action or decision, including costs, benefits, risks, and potential for profit.

Cannibalization Potential

The likelihood that a new product will decrease sales of existing products offered by the same company.

Prototype

An initial model of a product used to test and validate design principles before full-scale production.