A Negative Externality or Spillover Cost Occurs When

question 19

Multiple Choice

A negative externality or spillover cost occurs when:

• A) firms fail to achieve allocative efficiency.
• B) firms fail to achieve productive efficiency.
• C) the price of the good exceeds the marginal cost of producing it.
• D) the total cost of producing a good exceeds the costs borne by the producer.

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Definitions:

Levels of Disappointment

Refers to varying degrees of dissatisfaction experienced by consumers when expectations are not met by products, services, or experiences.

Levels of Disappointment

Measures or degrees of dissatisfaction experienced by customers when products, services, or experiences fail to meet expectations.