Consider a Market with a Negative Externality

question 64

Multiple Choice

Consider a market with a negative externality.The market will tend to ________ the good because the market participants tend to ignore the ________ of their decision.

• A) overproduce; external benefit
• B) underproduce; external benefit
• C) overproduce; external cost
• D) underproduce; external cost
• E) overproduce; internal benefit

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Definitions:

Electronic Discussion

Conversations or exchanges of ideas that occur through digital platforms, such as forums, email, or messaging apps.

Computer-Moderated Communication (CMC)

Forms of communication between individuals or groups primarily facilitated by computers, including email, instant messaging, and online forums.

Group Polarization

this occurs when the presence of a group intensifies the original opinions of its members, leading to more extreme positions.

Traditional Teams

Groups operating within established boundaries and protocols, often adhering to hierarchical structures.