When a Business Produces a Product That Creates External Costs

question 205

Multiple Choice

When a business produces a product that creates external costs

• A)the company produces a level of output larger than would be produced without the external cost.
• B)the company produces a level of output smaller than would be produced without the external cost.
• C)the company produces a level of output which would be the same as it would produce without the external cost.
• D)the market provides the efficient level of output even with the existence of the external cost.

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Definitions:

Hypnosis

A procedure in which the practitioner suggests changes in a subject’s sensations, perceptions, thoughts, feelings, or behavior.

Schizophrenia

A mental disorder characterized by disturbances in thought, perception, and behavior, leading to a disconnection from reality.

Disorganized Speech

A symptom of some psychiatric disorders, characterized by incoherent or nonsensical talk and a lack of logical connection between thoughts.

Heritable Factors

Traits or characteristics that are passed from parents to offspring through genes.