When a Market Is Corrected for Externalities,it

question 93

Multiple Choice

When a market is corrected for externalities,it:

• A) is efficient and maximizes surplus.
• B) is equitable and makes everyone better off.
• C) needs government regulation to maintain.
• D) All of these statements are true.

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Definitions:

Wholly Owned Subsidiary

A company whose entirety of shares is held by another corporation, the parent company, thus giving the parent complete control.

E-Commerce Firm

A company that conducts its business transactions through the internet.

Entry Tactic

A strategy employed by businesses to enter a new market, overcome barriers, and compete effectively.

"Make" Tactic

A strategy within businesses to produce goods or services in-house, as opposed to outsourcing from external suppliers.