How business causes a positive effect on other business


Problem: A reading club is located next to a bookstore. The club invites authors per month to discuss their books and earns profits of 84-2. The bookstore sells books and earns profits of 12-2. 1st attempt Part 1 Each business causes a positive effect (a positive externality) on the other business. Choose one: A. true B. false Part 2 Assume business owners care strictly about maximizing profits. Compare the case where the book club and the bookstore are owned by two separate owners versus the case where they are owned by the same owner. In the case of a single owner, we would expect that more books are sold than under separate ownership.

 

 

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Other Management: How business causes a positive effect on other business
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