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Explain the Difference Between an Internal Cost and an External

question 136

Essay

Explain the difference between an internal cost and an external cost.Give an example of each for a car.


Definitions:

Expected Value

A calculated average of all possible outcomes of a random variable, weighted by the probability of each outcome occurring.

Conditional Value

A value that depends on the fulfillment of a specific condition or set of conditions, often used in decision-making processes.

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