Question
What type of Externality is this? A clothing store and a jeweler are located side by sidein a shopping mall. If the clothing store spends
What type of Externality is this?
A clothing store and a jeweler are located side by sidein a shopping mall. If the clothing store spends C dollarson advertising and the jeweler spends J dollars onadvertising, then the profits of the clothing store will
be (24 + J)C - C2and the profits of the jeweler will be(66 + C)J - 2J2. Each firm'sadvertising expenditures has a:
A. Positive Production Externality
B. Negative Production Externality
C. Positive Consumption Externality
D. Negative Consumption Externality
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Using R For Econometrics
Authors: Florian Heiss
1st Edition
1523285133, 9781523285136
