When Negative Externalities Are Present in a Market

question 347

Multiple Choice

When negative externalities are present in a market,

• A)producers will be affected but consumers will not.
• B)producers will supply too much of the product.
• C)demand will be too high.
• D)the market will still maximize total benefits.

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Definitions:

Random Sample

A subset of individuals chosen from a larger set in such a way that every individual has an equal chance of being included in the sample.

Excel Output

The results produced by Microsoft Excel after processing data through formulas, functions, or simulations.

Sum of Squares

A statistical measure that quantifies the total variation within a dataset, calculated by summing the squares of differences from the mean.

Sum of Squares

The sum of the squared differences between each observation and the overall mean, used in various statistical models to measure variability.