When Positive Externalities Exist in a Market,if It Is Internalized

question 125

Multiple Choice

When positive externalities exist in a market,if it is internalized:

• A)those who interact in the market will lose surplus.
• B)those who interact in the market will gain surplus.
• C)those who do not interact in the market,but are affected by the externality,will gain surplus.
• D)None of these statements is necessarily true.

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Definitions:

Value System

A coherent set of beliefs and values that guide the behavior of an individual or group.

Internalization

The process by which individuals incorporate and adopt the values, beliefs, and norms of a group or society as their own.

Political Environments

Refers to the totality of political forces and governmental systems, along with the public policies they influence, that impact an organization or society.

Political Savvy

The skill of understanding and navigating the power dynamics within an organization to achieve objectives and influence outcomes.