The Inclusion of External Benefits in the Decision Making Process

question 59

Multiple Choice

The inclusion of external benefits in the decision making process determining equilibrium price and quantity leads to

• A) lower priced items and increased quantity.
• B) lower priced items and a decline in quantity.
• C) higher priced items and increased quantity.
• D) higher priced items and a decline in quantity.

---

Definitions:

Willingness And Ability

The readiness and capacity of an individual or group to engage in a particular activity or transaction.

Consumers

Consumers are individuals or entities that purchase goods and services for personal use and not for manufacture or resale.

Distribution

The process of making a product or service available for the consumer or business user that needs it, which can include warehousing, transportation, and logistics.

Entrepreneurial Ability

The capacity to innovate, introduce new products or services, improve processes or business models, and effectively manage and grow a business under conditions of uncertainty.