The Reason Externalities Distort the Allocation of Resources Is That

question 1

Multiple Choice

The reason externalities distort the allocation of resources is that

• A)too few goods are usually produced.
• B)firms often go out of business because of the externality.
• C)a firm's private costs do not reflect the social cost of production.
• D)regulating externalities uses scarce resources.

---

Definitions:

Diagnostic Session

A meeting or process where specific issues, problems, or challenges are analyzed to identify solutions or interventions.

Team Building

Activities and exercises aimed at improving interpersonal relations and group dynamics within a team to enhance its performance.

Survey Feedback

A process used in organizational development where data collected from surveys is analyzed and fed back to the participants or relevant groups to facilitate improvement or change.

Managers

Individuals in an organization responsible for directing the activities of others and making strategic decisions to achieve goals.