Answer:
b. providing a subsidy to correct for an underallocation of resources.
Explanation:
When the external benefit of an activity exceeds cost, the activity generates postive externality.
Activities that generate positive externality are usually under produced usually because of the high cost of production . Government can encourage production of activities that generate positive externality by giving subsidy which reduces the cost of production and increases production.
I hope my answer helps you
Answer:
trialability
Explanation:
Since in the given situation it is mentioned that an online retailer offers for free try for his customers and the customers select five pairs theywant to try. Also they could select either for purchase or return
So here it related to the trail of its products where the customer could see whether the company product provide the satisfaction or not and according to this they take the decision whether to purchase the product or not
Hence, the last option is correct
Answer:
C) The current prices of most of Squeaky Clean's products are lower than the prices of competing brands.
Explanation:
If Squeaky laundry detergent is cheaper than its competition, then it should have certain room for increasing its price. They should be careful not to increase Squeaky's price above the competition since probably a significant part of their sales is due to its lower price. As long as Squeaky's price is still lower than its competition, its demand shouldn't be affected.
Answer:
This is just an advertisement due to the fact that it misses terms in order to be an offer
Explanation:
To begin with, if we wanted to make that advertisiment a more specifically offer then the manager should add certain conditions and terms in order to make it, like for example the conditions that are necessary in a contract to accept the offer that is being made by the company to the client. Therefore that in order to make that advertisiment an offer it is necessary to add the conditions of the sale that the consumer will have to agree to if he wanted to buy that offer.
