If Coal Mining Produces a Negative Externality in the Form

question 110

Multiple Choice

If coal mining produces a negative externality in the form of polluted streams then,at the market equilibrium,the:

• A)price of coal is too high.
• B)quantity of coal produced is too small.
• C)quantity of coal produced is too high.
• D)supply curve lies to the left of the regulated supply curve.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities, such as rent, salaries, and insurance.

Peak-period Orders

Orders that occur at the highest volume times, often during seasonal or specific heavy demand periods.

Logistics Department

A division within a company that manages the movement of goods from the manufacturer to the end-user, covering transportation, warehousing, and inventory.

Operating Divisions

Sections or branches within a company that focus on distinct lines of business or market areas, responsible for their own revenues, expenses, and operations.