What Is Off-Price Retailing? Identify and Give an Example of the Three

question 18

Essay

What is off-price retailing? Identify and give an example of the three variations of off-price retailing.

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Definitions:

Marginal Social Benefits

The extra advantage obtained by society from the consumption of an additional unit of any product or service.

Positive Externalities

Benefits that are enjoyed by third-parties as a result of an economic transaction or activity, without them directly participating in the transaction.

Pigouvian Tax

A tax imposed on activities that generate negative externalities, aimed at correcting an inefficient market outcome.

Marginal Social Benefits

The incremental benefit the public receives from consuming an additional unit of a good or service.