Which of the Following Describes How a Negative Externality Affects

question 65

Multiple Choice

Which of the following describes how a negative externality affects a competitive market?

• A)The externality causes a difference between the private cost of production and the social cost.
• B)The externality causes a difference between the private cost of production and the private benefit from consumption.
• C)The externality causes consumer surplus to exceed producer surplus.
• D)The externality causes a difference between the private cost of production and the equilibrium price.

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Definitions:

Operating Culture

The collective behaviors, beliefs, and values that influence the day-to-day operations and overall atmosphere within an organization.

Engineering Culture

The set of characteristics, norms, and practices that define the professional environment and approach of engineers and engineering teams.

Executive Culture

The attitudes, behaviors, and values that are prevalent among an organization's top management and leadership teams.

Organizational Culture

The collective way in which an organization's members interact and work, deeply influenced by shared values and traditions.