Which of the following would be considered a negative externality?   Question 7 options:   You are considering running your business out of your home.  You own your home (i.e. no mortgage) and the value of the house is $200,000   You have paid a consultant $10,000 for a marketing analysis related to a capital budgeting project that you are analyzing.  This fee has been paid and cannot be recovered if you do not go ahead with the project.   Coke is considering a new line of lite beverages.  If Coke goes ahead with this investment, it will cannibalize sales of Coke's existing drink lines

Question

Which of the following would be considered a negative externality?

 

Question 7 options:

 

You are considering running your business out of your home.  You own your home (i.e. no mortgage) and the value of the house is $200,000

 

You have paid a consultant $10,000 for a marketing analysis related to a capital budgeting project that you are analyzing.  This fee has been paid and cannot be recovered if you do not go ahead with the project.

 

Coke is considering a new line of lite beverages.  If Coke goes ahead with this investment, it will cannibalize sales of Coke's existing drink lines

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