Which of the Following Is a Problem That Keeps People

question 344

Multiple Choice

Which of the following is a problem that keeps people from privately solving externality problems?

• A)Each party involved holds out for a better deal.
• B)The externality is large.
• C)Only problems with a sufficiently large number of parties can be solved.
• D)There is a lack of government intervention.

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Definitions:

Direct Labor-Hours

Direct labor-hours are the total hours worked by employees directly involved in the manufacturing process.

Direct Materials Cost

The cost of raw materials used to produce a product, which are directly attributable to the product.

Direct Labor-Hours

The combined working hours of employees directly contributing to the manufacturing cycle.

Direct Materials Cost

The cost of raw materials directly used in the production of goods or services.