If a Market Is Characterized by a Positive Externality That

question 95

Multiple Choice

If a market is characterized by a positive externality that is not the result of a technology spillover,

• A)the socially optimal level of output is less than the equilibrium level of output, and the optimal price is greater than the equilibrium price.
• B)the socially optimal level of output is greater than the equilibrium level of output, and the socially optimal price is less than the equilibrium price.
• C)the socially optimal level of output is greater than the equilibrium level of output, and the socially optimal price is greater than the equilibrium price.
• D)the socially optimal level of output is less than the equilibrium level of output, and the socially optimal price is less than the equilibrium price.

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Definitions:

Contingent Employees

Workers who are hired on a temporary basis or whose job status is based on specific conditions rather than permanent employment.

International Employees

Workers who are employed by an organization in a country other than their home country or who work across national borders.

Compensation Committee

A subgroup of a board of directors that is responsible for setting and guiding policies related to executive and employee compensation.

CEO's Compensation

The payment and benefits package provided to the Chief Executive Officer, reflecting responsibilities and aiming to incentivize performance.