Which of the Following Is True of the Four Attributes

question 75

Multiple Choice

Which of the following is true of the four attributes that make Porter's diamond?

• A)Absence of any single attribute does not impact effectiveness of the diamond.
• B)The effect of one attribute is contingent on the state of others.
• C)The diamond is not a mutually reinforcing system.
• D)Chance events,such as major innovations,do not affect Porter's diamond.
• E)Only in the absence of one of the four attributes can government policies influence Porter's diamond.

Analyze the impact of externalities on private and social costs and benefits.

Explain the concept of market equilibrium and how it is affected by externalities.

Understand the role of governmental policies in correcting market failures due to externalities.

Describe the difference between positive and negative externalities.

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Definitions:

Relevant Costs

Future costs that will differ under various alternatives, considered important for making financial decisions.

Special Order

An order for goods or services that is outside the company's normal scope of operations or requires customization to meet the customer's specific requirements.

Excess Capacity

A situation where a company can produce more goods or services than currently demanded by the market, indicating underutilization of resources.

Allocated Fixed Costs

Fixed costs that are assigned or distributed across different departments, products, or activities within a company for budgeting and accounting purposes.