Which of the Following Is an Example of a Positive

question 64

Multiple Choice

Which of the following is an example of a positive externality?

• A) beautiful trees on property along a parkway
• B) airport noise
• C) pollution in a resort lake
• D) a busy freeway

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Definitions:

Variable Cost

Expenses that change in proportion to the activity of a business.

Perceived Value

The customer's evaluation of the worth of a product or service based on its ability to meet their needs and expectations, rather than its objective cost or value.

Cost Competitive Parity

A pricing strategy where a company sets its product prices based on competitors' prices to stay competitive.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including rent, wages, and insurance premiums.