What is required for a positive externality to occur?
A) The full benefits of an action aren't taken into account.
B) The intention or plan to directly help other people
C) A concern for social welfare
D) Courtesy and honesty
E) All the above.
Question 2
Why does a new hardcover Stephen King novel have a higher price than the paperback edition?
A) It costs more to produce.
B) The elasticity of demand differs.
C) The publisher is more greedy when marketing the hardcover edition.
D) The publisher is a price searcher on the hardcover editions and a price taker on the paperback editions.
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