Merck and Co

question 62

True/False

Merck and Co.,having learned from the Johnson & Johnson Tylenol incident,was quick to respond when the first reports of problems with Vioxx arose.

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Definitions:

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, commonly seen in situations where the activity of one entity leads to positive effects for others.

Fire Extinguishers

Safety devices used to extinguish or control small fires, often in emergency situations.

External Benefit

A positive effect on a third party or the society at large, generated by the production or consumption of a good or service.

Externalities

Costs or benefits of a market activity borne by a third party; can be negative (costs) or positive (benefits).