Yulhee buys and wears a certain perfume because she likes its fragrance. Which statement describes externalities in the perfume market that come from individuals wearing perfume?
A) There may be positive externalities because others enjoy the scent, but there are no negative externalities.
B) There may be negative externalities because some may be allergic to the scent, but there are no positive externalities.
C) There may be both positive and negative externalities, since some enjoy the scent and some others have an allergic reaction to it.
D) There are no externalities associated with wearing perfume.
Correct Answer:
Verified
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