Total Surplus in the Presence of an Externality That Has

question 135

Multiple Choice

Total surplus in the presence of an externality that has not been internalized:

• A)is greater than total surplus when the externality is internalized.
• B)is less than total surplus when the externality is internalized.
• C)is the same as total surplus when the externality is internalized.
• D)is zero,since it has not been internalized.

---

Definitions:

Global Strategy

A comprehensive plan developed by businesses to operate and compete on an international scale.

Multinational Company

A corporation that operates in several countries beyond its original country of incorporation, often having a global presence.

College Student Activism

The involvement of college and university students in campaigns and movements aimed at bringing about social, political, or environmental change.

Corporate Codes

Sets of principles and ethics that a company agrees to follow, often relating to social responsibility, environmental policies, and employee relations.