When a Producer Does Not Internalize the Negative Externality Associated

question 6

Multiple Choice

When a producer does not internalize the negative externality associated with the production of a good,then:

• A)the socially optimal quantity of output must be larger than the market output.
• B)the socially optimal quantity of output must be less than the market output.
• C)the socially optimal quantity of output must be equal to the market output.
• D)the socially optimal quantity of output can be either larger or smaller than the market output.

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Definitions:

Specific Culture

refers to the unique set of beliefs, values, customs, and practices that characterizes an organization, region, or group.

Geert Hofstede

A Dutch social psychologist known for his research on the interactions between national cultures and organizational cultures.

Management Techniques

These are methods, strategies, and practices used by leaders to administer and control organizational resources effectively to achieve desired outcomes.

U.S.

The United States, a federal republic in North America, composed of 50 states, a federal district, five major self-governing territories, and various possessions.