A Negative Externality Occurs When the Purchase of a Product

question 69

Multiple Choice

A negative externality occurs when the purchase of a product

• A)causes the seller of the product to lose profits.
• B)increases market competition.
• C)causes the government to lose tax revenues.
• D)adversely affects the well-being of an individual outside of the market.
• E)causes a lower market price.

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Definitions:

Market Entry

The strategy or methodology used by a company to begin selling its products or services in a new market or geographical area.

Entry Strategy

A planned method of delivering goods or services to a new target market and distributing them there.

Risky Business

Activities or ventures that involve a high degree of uncertainty and potential for financial loss, but also an opportunity for significant rewards.

International Marketing

The practice of marketing goods or services beyond domestic borders, taking into consideration the diverse conditions of global markets.