Figure 151 Figure 15

question 72

Multiple Choice

Figure 15.1 Figure 15.1 shows a market with an externality.The current market equilibrium output of Q₁ is not the economically efficient output.The economically efficient output is Q₂.
-Refer to Figure 15.1.Suppose the current market equilibrium output of Q₁ is not the economically efficient output because of an externality.The economically efficient output is Q₂.In that case, the diagram shows

• A)the effect of a positive externality in the production of a good.
• B)the effect of a negative externality in the production of a good.
• C)the effect of an external cost imposed on a producer.
• D)the effect of an external benefit such as a subsidy granted to consumers of a good.

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Definitions:

Learning And Development

The process of enhancing the skills, competencies, and knowledge of an individual or a group, aimed at improving personal and organizational effectiveness.

Business Impact Data

Information and metrics that demonstrate the effect of learning and development activities on business outcomes, often used to justify investments in training.

CEOs

Chief Executive Officers, who are the highest-ranking individuals in a company or organization, responsible for making major corporate decisions.

Utility Calculation

A method for assessing the value or efficacy of a service or product by measuring its usefulness and impact.