When a Business Produces a Product That Creates External Costs

question 205

Multiple Choice

When a business produces a product that creates external costs

• A)the company produces a level of output larger than would be produced without the external cost.
• B)the company produces a level of output smaller than would be produced without the external cost.
• C)the company produces a level of output which would be the same as it would produce without the external cost.
• D)the market provides the efficient level of output even with the existence of the external cost.

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Definitions:

Group Shopping

A purchasing approach where a group of individuals come together, often through online platforms, to buy products in bulk or to avail discounts offered for group purchases.

LivingSocial

An online marketplace that allows users to buy and share things to do in their city, offering discounted gift certificates usable at local or national companies.

Website

A set of related web pages located under a single domain name, typically produced by a single individual or organization.

Customer Ratings

Evaluative feedback given by customers regarding their satisfaction or dissatisfaction with a product or service.