Which of the Following Methods Could Be Used to Correct

question 47

Multiple Choice

Which of the following methods could be used to correct for external costs?

• A) Impose a tax or an effluent fee on the offenders.
• B) Have the offender clean up the pollution it caused.
• C) Require firms in the industry to install pollution control devices.
• D) All of the above would be appropriate.

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Definitions:

Horizontal Structure

An organizational layout that emphasizes teamwork and collaboration among departments or teams, with a minimal level of hierarchy.

Divisional Structure

An organizational arrangement where operations are grouped based on similar products or services, markets, or geographic locations.

Functional Structure

Functional Structure refers to an organizational form where the company is divided into departments each handling a specific function, like marketing or finance, concentrating expertise but potentially limiting inter-department communication.

Vertical Structure

An organizational structure where authority flows from the top down, with a clear line of command.