Consider a Market with a Negative Externality

question 64

Multiple Choice

Consider a market with a negative externality.The market will tend to ________ the good because the market participants tend to ignore the ________ of their decision.

• A) overproduce; external benefit
• B) underproduce; external benefit
• C) overproduce; external cost
• D) underproduce; external cost
• E) overproduce; internal benefit

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Definitions:

CRM Systems

Software applications designed to help organizations manage their customer data, support sales management, and facilitate customer interaction, enhancing customer satisfaction and retention.

External Vendor

A third-party entity that provides goods or services to another organization under terms specified in a contract.

CRM System

A Customer Relationship Management (CRM) system is a technology for managing all your company's relationships and interactions with current and potential customers.

Distribution Portals

Web-based platforms that allow for the distribution and management of content or products across various distribution channels.