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Elmo Research & Development has been going through a rough patch lately.Turnover has been high and employee morale is at an all-time low.Though employees and competitors hold management responsible for the decline, the CEO does not let the managers go or change the management style.Which of the following could explain this attitude?
Externalities
Externalities are indirect effects of economic activities on third parties, which can be either positive or negative.
Negative Externality
A situation where a third party is adversely affected by the outcome of a transaction or activity between others, not compensated by those causing the impact.
Acid Rain
Acid rain is precipitation with a high concentration of acidic components, typically resulting from industrial emissions that affect water, soil, and living conditions adversely.
Tradable Pollution Permits
Licenses that allow the holder to emit a certain amount of pollution that can be bought and sold, aiming to reduce overall pollution in a cost-effective manner.
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