The private market will produce more than the economically efficient output level. Also when there is a negative externality then the cost to producers will be less than the cost to society. Remember that a negative externality is a cost that is suffered by a third party as a result of an economic transaction. Also have in mins that externalities lead to market failure<span> because the price equilibrium </span>does<span> not reflect the true costs and benefits of a product.</span>
Answer:
TRUE
Explanation:
In managerial accounting, there are 2 meanings and significance of a relevant range.
1. The relevant range is the level of activity (range) that a firm is operating i.e. the volume of its production activity.
2. The relevant range is the level of activity within which certain cost behaviors are true i.e. whether the costs by their characteristics are fixed or variable.
Beyond a relevant range, cost behaviors could change in 2 ways
1. Variable costs could start manifesting the characteristic of semi variable costs or mixed costs or
2. Fixed costs could become stepped and become stepped fixed costs.
Therefore cost estimations which is based on cost behavior are only VALID within the relevant range. It is only within a given level of output that certain cost estimations holds true.
This is the full statement: According to Wolfman 'brands that will thrive will be those like pizza hut, that can efficiently build sustainable relationships with people, relationships that have both high trust and high transaction. The answers are trust and transactions.
If a firm hires an additional worker and discovers that its total output has fallen, then it must be true that marginal physical product is negative.
What is the change in total output that results from hiring one additional worker?
The difference in production brought on by using an additional unit of labor is known as the marginal product of labor.
Does hiring additional workers increase the total revenue at a decreasing rate?
Total output increases with additional employees, although at a slower rate. a stage of production where an increase in the labor force leads to a decline in labor's marginal product. With each new unit of labor added to the mix, a company with this will produce progressively less production.
Learn more about marginal product of labour: brainly.com/question/16690539
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Answer:
C.
Explanation:
Because naturally within a market the equilibrium price is trying to be reached, (besides price ceilings and floors imposed by the government), Sellers will naturally push the price downwards because they must compete with each other to make a living. Thus answer C. is correct.
