An Example of a Good with a Positive Externality Is

question 141

Multiple Choice

An example of a good with a positive externality is

• A)acid rain.
• B)an oil spill.
• C)air pollution.
• D)a contagious disease.
• E)research.

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Definitions:

Prestige Pricing

Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

Quality

The level at which a product or service achieves or outdoes the expectations of customers.

Status-conscious Consumers

Consumers who make purchasing decisions based on the perceived status or prestige associated with a product or brand.

Penetration Pricing Policy

A business strategy where the initial product price is set very low to gain market share quickly.