Free Markets Produce Too Little Output When

question 58

Multiple Choice

Free markets produce too little output when

• A)negative externalities exist
• B)positive externalities exist
• C)production uses fixed-production technology
• D)production uses variable technology
• E)the resource is exhaustible

---

Definitions:

Motor Division

A specialized business unit within a larger company focused on the production and sale of motor vehicles or related components.

Automotive Division

A specialized branch within a company focused on the development, manufacturing, and/or sale of vehicles and related automotive products.

Transfer Price

The price charged for goods or services sold between divisions, subsidiaries, or companies under the same control.

Northern Division

Typically refers to a geographical or organizational segment of a business located in the northern part of a country or region.