Which of the Following Is Most Likely to Create a Positive

question 35

Multiple Choice

Which of the following is most likely to create a positive externality for its neighboring community members?

• A) A coal mine
• B) An organic farm
• C) A petroleum refinery
• D) A dye manufacturing company

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Definitions:

Cost Curves

Graphical representations that show how the cost of producing a good or service varies with the quantity produced.

Total Fixed Costs

The sum of all costs required to produce any level of output that does not change with the amount produced, such as rent or salaries.

Marginal Costs

The surcharge associated with the fabrication of an additional unit of a good or service.

Short-Run Supply Schedule

The Short-Run Supply Schedule illustrates how much of a good or service producers are willing to supply at different price levels within a short time frame.