In a Market Where a Positive Externality Is Present,the Effect

question 83

Multiple Choice

In a market where a positive externality is present,the effect of a government subsidy would be to ensure:

• A) a more fair distribution of surplus.
• B) an efficient outcome.
• C) that those who enjoy the benefit receive the surplus.
• D) All of these statements are true.

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Definitions:

Accelerating Sales

Strategies employed by companies to increase revenue generation speed, often through promotions or improved distribution.

Functional Lines

Refers to the division within an organization based on function or role, such as sales, marketing, or production.

Functional Expertise

Specialized knowledge or skills in a particular area or department within an organization.

Economies of Scale

The cost advantages that a business obtains due to expansion and the scaling up of production, leading to a reduction in per-unit costs.