When the Loss from a Business-Stealing Externality Exceeds the Gain

question 139

Multiple Choice

When the loss from a business-stealing externality exceeds the gain from a product-variety externality:

• A) market efficiency is likely to be enhanced by the entry of new firms
• B) the market structure is likely to be in transition
• C) firms are more likely to operate at efficient scale
• D) there are likely to be too many firms in a monopolistically competitive market

---

Definitions:

Home-Care Client

An individual who receives health care or support services in their own home rather than in a medical facility.

Mastectomy

A surgical procedure involving the removal of one or both breasts, partially or entirely, typically to treat or prevent breast cancer.

Dressing Change

The process of replacing an old wound dressing with a new one to promote healing and prevent infection.

Herbal Therapies

The use of plants or plant extracts for medicinal purposes, to prevent or treat various ailments.