1Cademy - A new coffee shop opens, offering higher quality coffee at a lower price than an existing shop next door. As a result, the existing shop loses many customers and eventually goes out of business. From an economic perspective, why is this outcome *not* considered a negative external effect?

Multiple Choice

A new coffee shop opens, offering higher quality coffee at a lower price than an existing shop next door. As a result, the existing shop loses many customers and eventually goes out of business. From an economic perspective, why is this outcome not considered a negative external effect?

Updated 2025-09-01

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