If Negative Externalities Are Created in the Production of a Good

question 120

Multiple Choice

If negative externalities are created in the production of a good, then society will:

• A)​produce too much of the good since the marginal private cost to firms is less than the marginal social cost.
• B)​produce too little of the good since the marginal private cost to firms is less than the marginal social cost.
• C)​produce too much of the good since the marginal private cost to firms is greater than the marginal social cost.
• D)​produce too little of the good since the marginal private cost to firms is greater than the marginal social cost.

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Definitions:

Commitment

A dedication to a cause or activity, often evidenced by a willingness to invest time, resources, and effort.

Self-Sacrifice

The act of forgoing one's interests, needs, or desires for the benefit of others or for a larger cause.

High Performance

Describes systems or individuals who consistently achieve superior results relative to predefined standards.

Charismatic Leaders

Individuals who inspire and motivate others through their personal magnetism, communication skills, and ability to instill belief in a vision.