If Companies Who Took into Account an Externality Want to Supply

question 84

Multiple Choice

If companies who took into account an externality want to supply less at any given price compared to the original market supply,it must be a:

• A) positive externality.
• B) negative externality.
• C) network externality.
• D) social externality.

---

Definitions:

Superstitions

Beliefs or practices resulting from ignorance, fear of the unknown, trust in magic or chance, or a misunderstanding of causation.

Obsessive-Compulsive Behaviors

Repetitive actions or mental acts that a person feels compelled to perform, often driven by irrational fears or thoughts.

Avoidance Learning

A type of learning in which an organism learns to prevent or avoid an unpleasant experience.

Conditioned Response

A learned reaction to a specific stimulus as a result of conditioning, where the response becomes automatic or reflexive.