If There Are External Benefits or Positive Externalities Associated with the Consumption

question 95

Multiple Choice

If there are external benefits or positive externalities associated with the consumption of a good or service:

• A)the private demand curve will overestimate the true demand curve.
• B)the private demand curve will underestimate the true demand curve.
• C)consumers will be willing to pay for all these benefits in private markets.
• D)the market demand curve will be the vertical summation of the individual demand costs.

Understand the concept and benefits of scenario planning.

Differentiate between qualitative and quantitative forecasting methods.

Comprehend the principles and applications of zero-based and contingency budgeting.

Identify the strategic importance of planning in corporate acquisitions and expansions.

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Definitions:

Basic Categories

Fundamental groups or classes into which objects or concepts are divided based on shared characteristics.

Resources

Assets, materials, or other assets that can be utilized to achieve goals or complete tasks.

Direct Costs

Expenses that are directly attributable to the production of goods or services, such as materials and labor.

IFB

An Invitation for Bid, a solicitation issued by organizations when they require contractors to bid on supplying goods or services.