If a Production Process Creates Positive Externalities,a Competitive Market Produces

question 14

Multiple Choice

If a production process creates positive externalities,a competitive market produces too few positive externalities because the producer

• A) does not pay all the costs of the externalities.
• B) does not receive compensation for the externalities.
• C) Both A and B.
• D) None of the above.

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Definitions:

Action Potential

A temporary shift in the electrical charge of a neuron's membrane, leading to the transmission of a nerve impulse.

Electrical Signal

The transmission of information through neurons or other cells using changes in voltage or electric current.

Axon

The long, slender projection of a neuron that conducts electrical impulses away from the neuron's cell body towards other neurons or muscles.

Myelin Sheath

A layer of fatty tissue surrounding the axons of some neurons that speeds up the transmission of electrical impulses.