External Costs Occur Because

question 89

Multiple Choice

External costs occur because

• A) Private costs do not reflect the full costs to society.
• B) Government failure increases costs for the firm.
• C) All costs are absorbed by the firm.
• D) Firms make a choice other than the most cost-efficient production method. External cost is a cost of a market incurred by a third party.

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Definitions:

Innovative Vision

The ability to foresee novel ideas, trends, or concepts that can lead to the creation of groundbreaking products or solutions.

Leadership Effectiveness

The extent to which a leader is able to inspire, influence, and enable others to contribute toward the effectiveness and success of their organization.

Disciplining Employees

The process of enforcing organizational rules and correcting employee behavior that does not align with company standards.

Crowdsourcing

The practice of obtaining information or input into a project or task by enlisting the services of a large number of people, typically via the Internet.