When There Are External Costs to Production,output Produced in a Competitive

question 100

Multiple Choice

When there are external costs to production,output produced in a competitive market:

• A)is less than the efficient level.
• B)is more than the efficient level.
• C)increases with an imposition of a tax on the commodity.
• D)eventually falls to zero.

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Definitions:

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.

Human Capital

Human capital represents the knowledge, skills, competencies, and attributes embodied in individuals that facilitate the creation of personal, social, and economic well-being.

Triple Bottom Line

An accounting framework that incorporates three dimensions of performance: social, environmental, and financial.

Economic

Pertaining to the production, distribution, and consumption of goods and services, as well as the management of money and resources in a region or country.