An Industry with Production That Generates External Costs Produces a Quantity

question 17

Multiple Choice

An industry with production that generates external costs produces a quantity of output that is:

• A)socially optimal.
• B)smaller than the socially optimal quantity.
• C)larger than the socially optimal quantity.
• D)socially optimal if a specific subsidy is given to buyers.

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Definitions:

Participative Management

An administrative approach that involves employees in decision-making processes and policy formation to increase ownership and commitment.

Positive Reinforcement

A process in behavioral psychology where the introduction of a desirable or pleasant stimulus immediately following a behavior increases the likelihood of the behavior occurring again.

Social Leadership Goals

Objectives aimed at influencing, guiding, or directing groups in social settings towards achieving collective aims.

Cultural Influences

The impact that the customs, practices, social norms, and values of a culture have on individuals and societies.