Negative Externalities Lead Markets to Produce

question 185

Multiple Choice

Negative externalities lead markets to produce

• A)greater than efficient output levels and positive externalities lead markets to produce smaller than efficient output levels.
• B)smaller than efficient output levels and positive externalities lead markets to produce greater than efficient output levels.
• C)greater than efficient output levels and positive externalities lead markets to produce efficient output levels.
• D)efficient output levels and positive externalities lead markets to produce greater than efficient output levels.

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Definitions:

Subscription Revenue Model

Charging customers to gain continuous access to a product or service.

Continuous Access

Uninterrupted availability or entry to a service, resource, or facility over time.

Direct Cross-Subsidies

Financial strategy where revenue from one product or service is used to support another product or service within the same organization.

Upfront Cost

Initial investment required before starting a project, service, or acquiring a product, often referred to in financial decisions.