When a Negative Externality Is Present in a Market,the Quantity

question 37

Multiple Choice

When a negative externality is present in a market,the quantity consumed:

• A) is always less than the socially optimal quantity.
• B) is more than the socially optimal quantity.
• C) is the same as the socially optimal quantity.
• D) is often less than the socially optimal quantity.

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Definitions:

Work Centres

Specific locations, machines, or groups of machines within a manufacturing facility where distinct types of processes are performed.

Assignment Method

The assignment method is a mathematical technique used for allocating resources or tasks to units in an efficient manner, often used in operations research.

Job-Machine Combination

A matching process in operations management that involves assigning specific jobs to specific machines or workstations, optimizing for efficiency and output.

Optimal Assignments

The best possible allocation of tasks, resources, or personnel to jobs, projects, or roles based on specific criteria to maximize efficiency or outcome.