An External Cost Is Borne by

question 84

Multiple Choice

An external cost is borne by

• A)The producer of the good.
• B)The consumers of the good.
• C)A third party to the market transaction.
• D)Employees of the firm that produces the good.

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Definitions:

Retained Earnings

The portion of a company's net income that is not distributed to shareholders as dividends but is retained by the company to reinvest in its core business or to pay debt.

Accounts Payable

The amounts owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Spreadsheet

A digital tool that organizes data in columns and rows, commonly used for calculations and data analysis.