Which of the following actions is likely to create an external benefit: A

Marketing Dec 27, 2020

Which of the following actions is likely to create an external benefit:

A. Producing steel

B. Fertilizing and manicuring a lawn in a suburban neighborhood

C. Smoking in a crowded room

D. Speaking on a cell phone in a class room

Expert Solution

The correct answer is (B). Fertilizing and manicuring a lawn in a suburban neighborhood.

Fertilizing and manicuring a lawn is a beautification process that create a nice and neat environment. This prevent mosquitoes and other small rodents to find safe breeding grounds. Producing steel pollute the environment which causes external cost.

Smoking in a crowded room causes air pollution which disturbs nonsmoker's. Speaking on a cellphone while in class causes noise which distract other students.

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