Because of a _____ Externality, Marginal Social Cost Is Greater

question 16

Multiple Choice

Because of a _____ externality, marginal social cost is greater than marginal private cost.

• A) production
• B) social
• C) positive
• D) negative

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Definitions:

Odd-even Pricing

A pricing strategy where prices are set just below a round number, e.g., $19.99 instead of $20, to create a perception of greater value.

Product-line Pricing

A pricing strategy where different products within the same category are priced differently based on features, costs, or target market segments.

Price Differentials

The variation in the price of goods or services when compared across different markets, sellers, or buying conditions.

Price-insensitive Product

A product for which demand does not significantly change with a price increase or decrease, often due to its unique value or lack of alternatives.