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An External Cost Is

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An external cost is


Definitions:

Marginal Cost

The change in total cost that arises when the quantity produced increases by one unit.

Industry Output

The total quantity of goods or services produced by all firms within a particular industry.

Zero Marginal Cost

The scenario in which producing one more unit of a good or service does not increase the total cost of production, typically seen in digital goods or highly automated processes.

Marginal Cost

The extra expense linked to generating one more unit of a product or service.

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