. An externality is: A. the costs that parties incur in the process of agreeing and following through on a bargain. B. the uncom
pensated impact of one person's actions on the well-being of a bystander. C. the proposition that private parties can bargain without cost over the allocation of resources. D. a market equilibrium tax.
The correct answer is B. the uncompensated impact of one person's actions on the well-being of a bystander.
Explanation:
A transaction involves two parties, for example, consumer and the seller, who are referred to as the first and second parties. Any other party that is not related to the transaction is referred to as a third party. A externality is a cost or gain that is suffered by a third party as a consequence of an economic transaction.
In others words , an externatily is an uncompensated impact of one person's actions on the well-being of a bystander.
You're serving on a marketing team for an online client, and you've been asked to create a list of key performance indicators (KPIs) to help improve the effectiveness of a current online ad campaign. What are two guiding principles that will help you create these KPIs?
There must be an alignment between the objectives and the mission of such organization marketing team
Also such key performance must revolve round the budget planning of the team
d. a monopoly firm reducing its price in an attempt to maintain its monopoly.
Explanation:
In a competitive system, a firm practices predatory pricing when it charges prices below its costs in order to eliminate competitors. When the prevailing system is a monopoly, the firm is the only company providing the good and it can practice predatory pricing in the short term to prevent a competitor from entering the market. Thus the firm remains monopolistic.
