If You Read This Chapter the Night Before This Test

question 176

Multiple Choice

If you read this chapter the night before this test and still cannot remember the correct marketing term to answer this question, it may very well be the result of

• A)selective retention.
• B)selective comprehension.
• C)selective exposure.
• D)selective perception.
• E)too much fun and too little studying.

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Definitions:

Socially Optimal

A state in which resources are allocated in the most efficient and equitable manner from a societal perspective.

Network Externality

A situation where the value or utility of a product or service to one user increases with the number of other users of the same or compatible products or services.

Marginal Private Benefits

The additional benefit received by consumers or producers from consuming or producing one more unit of a good or service.

Negative Externalities

Unintended adverse effects on third parties not involved in an economic transaction, like pollution.