Consider a Setting in Which There Is a Negative Externality,but

question 15

Multiple Choice

Consider a setting in which there is a negative externality,but no positive externality.It follows that

• A) the market outcome is inefficient.
• B) the market outcome is efficient.
• C) MSC > MPC
• D) MPC > MSC
• E) a and c

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Definitions:

Customer Service Department

A division within a company that handles inquiries, supports customers post-purchase, and resolves any issues or complaints.

Capacity Analysis

The assessment of the production capabilities of a business to determine how efficiently it can meet its production targets.

Time-Driven Activity-Based Costing

Time-driven activity-based costing is an approach to costing that assigns resource costs directly to products or services based on the actual time spent on activities, improving accuracy and simplifying the costing process.

Customer Service Department

A division of a business dedicated to addressing customer inquiries, complaints, and providing assistance.