QUESTION 2 Starbucks is thinking of opening up a new store. Which of the followi

Question

QUESTION 2 Starbucks is thinking of opening up a new store. Which of the following is an example of a positive externality for this investment? Some new customers who are unfamiliar with Starbucks will start buying Starbucks beans to make coffee at home. The real estate investment team at Starbucks spent a full year scouting out locations to find this one. None of the above. OThere is a manager at another store that really wants to work at the new location because it is closer to his house. Some customers will go to the new location instead of the old one.

Explanation / Answer

Answer should be None of the above as positive externalitites refer to any consumption or production causing a benifit to third party. Social Benifits is greater than Private benifits.

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