Question
In: Economics
An externality is present in a free market whenever: a.firms hire employees from outside the firm...
An externality is present in a free market whenever:
a.firms hire employees from outside the firm to fill positions normally filled by promotion from within the firm.
b.a monopolist spends funds to keep potential competitors out of the market.
c.an activity generates costs or benefits that are not reflected in market prices.
d.a tax is imposed on the supplier of a good.
Solutions
Expert Solution
Option
c.an activity generates costs or benefits that are not reflected in market prices.
An externality is a cost or benefits from a transition to the third party which is not in the transaction. A cost is incurred by negative externality and a benefit from positive externality.
Rahul Sunny answered 2 years agoRelated Solutions
Give an example of a market/industry where a negative externality in present. a. What is the...
Give an example of a market/industry where a negative
externality in present.
a. What is the difference between the private, unregulated,
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Use and explain private cost, social cost, and external cost.
b. Explain the source of dead weight loss in such a market.
Interpret this dead weight loss.
c. Provide two policy solutions to this problem. Use a
command-and-control option and a...
Give an example of a market/industry where a negative externality in present. a. What is the...
Give an example of a market/industry where a negative
externality in present.
a. What is the difference between the private, unregulated,
market output (Q)/price (P) and the optimal, regulated, market
output (Q)/price (P). Explain why/how this differencecomes about.
Use and explain private cost, social cost, and external cost.
b. Explain the source of dead weight loss in such a market.
Interpret this dead weight loss.
c. Provide two policy solutions to this problem. Use a
command-and-control option and a market-based...
A firm can either use their own employees to keep the office clean, or hire a...
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3. Would a pro-free market economist argue that garlic farmers facing competition from garlic farmers outside...
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In this chapter we suggested that whenever market price fell below average variable costs, the firm...
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Workplace deviant behavior varies from negative to positive, whenever employees threaten the well-being of an organization, ...
Workplace deviant behavior varies from negative to
positive, whenever employees
threaten the well-being
of an organization, is considered as
negative workplace deviance and when employees do some creative or
innovative work it is considered as positive workplace deviance.
Bennett and Robinson
(2003) have defined
workplace deviance as “purposeful behavior
that violates organizational norms and is intended to harm the
organization, its employees, or both”. Robbins and Judge (2007)
have defined deviant workplace behavior as “voluntary behavior that
violates significant organizational...
Workplace deviant behavior varies from negative to positive, whenever employees threaten the well-being of an organization, ...
Workplace deviant behavior varies from negative to
positive, whenever employees
threaten the well-being
of an organization, is
considered as negative workplace deviance and when employees do
some creative or innovative work it is considered as positive
workplace deviance. Bennett and Robinson
(2003) have defined workplace deviance as “purposeful behavior that
violates organizational norms and is intended to harm the
organization, its employees, or both”. Robbins and Judge (2007)
have defined deviant workplace behavior as “voluntary behavior that
violates significant organizational...
Discuss how a negative externality prevents a competitive market from allocating resources efficiently.
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from allocating resources efficiently.
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