When a negative externality exists, the marginal social cost is always higher than the marginal private cost. So, the correct answer is option A the private marginal costs are less than social marginal costs.
<h3><u>What is a negative externality?</u></h3>
When the manufacturing process has a negative impact on unconnected third parties, this is referred to as a negative production externality. For instance, manufacturing facilities contribute to noise and air pollution throughout the production process.
<h3><u>What happens when a negative externality exists?</u></h3>
The marginal social cost and the marginal private cost are no longer equal when a market has negative production externalities. As a result, the supply curve (which indicates the marginal private cost) does not accurately reflect the marginal societal cost and the social cost is instead larger due to the externality's per-unit cost.
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I’m pretty sure it’s that the market for complementary goods increase
Answer:
D. Simon, who is baking a cake that will be sold in a bakery
Explanation:
Simon is the producer here because he is producing a product to sell on the market.
C serve only as investors, as general partners take on all the risk and operation of the company, while limited partners invest their money, but don’t take part in the decisions of the company.
Hope this helps!
Answer:
The answer is B. Behavioral issues
Explanation:
Behaviour is embedded into the people and when this occur for a very long period of time, it becomes highly difficult to change these behaviours and moreover it becomes difficult for the employees change their attitudes and mindset as well.
Behavioral issues are among key obstacles when in implementing a new organisational strategies.