If Firms Have to Account for External Costs of Production

question 235

Multiple Choice

If firms have to account for external costs of production, then they will ________ compared with what they would do if they did not have to account for the external costs.

• A) underproduce and underprice
• B) underproduce and overprice
• C) overproduce and underprice
• D) overproduce and overprice

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Definitions:

Marketing Mix Elements

The components of a marketing strategy, traditionally identified as product, price, place, and promotion, used to meet the needs of a target market.

Dependent Variables

In research, these are variables that are expected to change as a result of changes in the independent variables.

Independent Variable

The variable in an experimental setting that is manipulated to observe its effect on a dependent variable.

Marketing Action

Specific tasks undertaken by a company to promote and sell its products or services to its target market.