An Externality Is the Effect That Occurs When the Production

question 184

True/False

An externality is the effect that occurs when the production or consumption of a good directly affects a third party.

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Definitions:

Shipper and Carrier

A shipper is a person or company sending goods; a carrier is the party responsible for the transport of those goods.

Contract

A legally binding agreement between two or more parties that is enforceable by law.

Environmental Performance

Refers to an organization’s impact on the environment, including the ways in which it manages resources and waste to mitigate harmful effects.

Cost Reductions

Strategies and actions taken to lower expenses and improve efficiency.