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:

Holder by Negotiation

Holder by negotiation refers to a person who has obtained possession of a negotiable instrument, such as a check, in a manner consistent with the statute's requirements for transfer, thereby acquiring the right to payment.

Involuntary

Occurring without a person's consent or against their will, often referring to actions or processes not chosen by an individual or group.

For Deposit Only

An endorsement on a check indicating that it can only be deposited into an account, not cashed.

Converted

In legal and financial contexts, this refers to the change of one form of property or asset to another, such as converting bonds to stocks or a commercial building to residential use.