When a Positive Externality Exists, the Equilibrium Quantity That Emerges

question 181

Multiple Choice

When a positive externality exists, the equilibrium quantity that emerges from a competitive market is

• A)too high.
• B)too low.
• C)just right.
• D)sometimes too high and sometimes too low.
• E)zero.

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Definitions:

Service Department Cost

Involves the expenses associated with the departments that do not directly produce goods but provide support or services to other departments within an organization.

ABC Corporation

A hypothetical or generic naming convention used to represent a company in examples or case studies.

Net Income

The amount of money a company keeps as profit once all taxes and expenses are deducted from its total income.

Accounting Records

Documents and ledgers that record financial transactions and the financial position of an entity, serving as the basis for financial reporting and analysis.