What Does the Phrase 'Internalising an External Cost' Mean

question 131

Multiple Choice

What does the phrase 'internalising an external cost' mean?

• A) limiting the extent to which domestic firms can outsource production
• B) prohibiting economic activities that create externalities
• C) forcing producers to factor into their production costs the cost of the externalities created in the production of their output
• D) finding a way to address cross-border pollution

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Definitions:

Sales Tracking

A type of research that follows changes in sales during and after promotional programs to see how the marketing efforts affected the company’s sales.

Place

As one of the “four Ps,” includes the activities the firm undertakes to make its product available to potential customers. Also known as distribution.

Distribution Function

Part of the marketing mix that involves the process of making a product or service available for consumption or use by a consumer or business user.

Causal Research

A type of marketing research used to understand the cause-and-effect relationships among variables.