In Which of the Following Externality Situations Would It Be

question 154

Multiple Choice

In which of the following externality situations would it be most likely that voluntary agreements could be used to internalize an externality?

• A) Littering on highways
• B) Overharvesting of alligators in Louisiana
• C) Poaching of elephants in Africa
• D) Trees of one neighbor blocking a view of another

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Definitions:

Customer Profitability

An analysis to determine the financial value a customer brings to a business over time, considering revenues and costs associated with the relationship.

Customer Service

Services and recommendations given by a firm to purchasers or users of its products or services.

Ease of Doing Business

The amount of effort required on the part of a customer when dealing with a firm.

Consumption Availability

The ease with which consumers can obtain and use a product or service, influenced by factors like location, supply chain efficiency, and inventory levels.