Liability Laws Are One of the Ways to ________ an Externality

question 10

Multiple Choice

Liability laws are one of the ways to ________ an externality.

• A) internalize
• B) eliminate
• C) increase
• D) privatize

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Definitions:

High-low Method

A technique in accounting used to estimate variable and fixed cost components of a cost by analyzing the highest and lowest activity levels.

Monthly Fixed

Regular, consistent expenses that a business incurs each month regardless of its operational volume, such as rent or salaries.

Lubrication Cost

Expenses associated with the lubrication of machinery and equipment in a manufacturing or production process.

Least-squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the differences between observed and predicted values.