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andre [41]
3 years ago
6

When external benefits are present in a market?

Business
1 answer:
lara31 [8.8K]3 years ago
4 0
When external benefits are present in a market INEFFICIENCY MAY ARISE, BECAUSE POTENTIAL PRODUCERS ARE UNABLE TO CAPTURE FULLY THE BENEFITS THAT THEIR ACTION CREATE FOR OTHERS.  This may cause the producers to produce just a little of this product. 
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This is because the article stated that the POD business had a lot more awareness on foreign sales production. They had tons of customers with 20% of their profit coming from Norway, and the rate keeps rising by year 3.

Foreign selling creates product awarness with more people being able to buy the product if overseas, making more profit from more people buying. If it were just sold in the U.S, for example, then not as many people could buy the cars, but foreign production can reach out to MANY more people.


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