When a Business Produces a Product That Creates External Costs

question 205

Multiple Choice

When a business produces a product that creates external costs

• A)the company produces a level of output larger than would be produced without the external cost.
• B)the company produces a level of output smaller than would be produced without the external cost.
• C)the company produces a level of output which would be the same as it would produce without the external cost.
• D)the market provides the efficient level of output even with the existence of the external cost.

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Definitions:

Conscious Experience

The subjective state of being aware of one’s thoughts, feelings, and surroundings, often explored in psychology and philosophy.

Unconscious Wishes

Desires and thoughts that reside in the unconscious mind, influencing behavior and feelings without one's awareness.

Skinner Box

An experimental apparatus developed by B.F. Skinner for studying animal behavior through operant conditioning.

Operant Chamber

A laboratory apparatus used to study animal behavior through operant conditioning, typically involving stimuli and levers for animals to manipulate in order to receive a reward.