A Positive Externality or External Benefit Occurs When

question 48

Multiple Choice

A positive externality or external benefit occurs when:

• A)product differentiation increases the variety of products available to consumers.
• B)the benefits associated with a product exceed those accruing to people who consume it.
• C)a firm produces at the P = MC output.
• D)economic profits are zero in the long run.

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Definitions:

Supply Chains

Networks connecting suppliers with customers to produce and distribute a specific product, encompassing all stages from raw materials to final delivery.

Related Diversification

A strategy where a business expands its activities into areas that are similar to its existing operations.

Organisational Growth

The process by which an organization increases in size, resources, capabilities, or market share over time.

Core Competencies

Fundamental strengths and abilities of a company that give it a competitive advantage.