An Example of a Positive Externality Is

question 131

Multiple Choice

An example of a positive externality is

• A)pollution because it affects people not directly involved with producing it
• B)a homeowner's maintenance of a beautiful lawn because this creates a benefit for neighbors
• C)creating a monopoly
• D)driving a car that emits pollution
• E)cigarette smoking because this imposes an indirect cost on people around the smoker

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Definitions:

Marginal Cost

The financial impact of producing an additional unit of a product or service.

Cookies

Small files created by a web server while a user is browsing a website and are stored on the user's computer, designed to hold a modest amount of data specific to a particular client and website.

Total Variable Cost

Total Variable Cost is the sum of all costs that vary with the level of production or output, including materials, labor, and other expenses that change in proportion to activity.

Fixed Cost

Fixed cost refers to expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.