Which of the Following Activities Is Most Likely to Generate

question 90

Multiple Choice

Which of the following activities is most likely to generate a positive externality?

• A)Tony plants roses in the large flowerbed in front of his condominium.
• B)Terry buys a cheeseburger from McDonalds.
• C)Pat installs a new CD player in his sedan.
• D)Sam shovels the snow from the porch of his house.

---

Definitions:

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales, such as rent or salaries.

Average Total Cost

The total cost divided by the number of units produced, calculating the cost to produce an average unit of output.

Chairs

Objects designed for seating, typically consisting of a seat, back, legs, and sometimes armrests, used for various purposes including dining and office work.

MC

Short for Marginal Cost, it is the change in total cost that arises when the quantity produced is incremented by one unit; it is the cost of producing one more unit of a good.