Which Statement Illustrates the Concept of External Cost

question 143

Multiple Choice

Which statement illustrates the concept of external cost?

• A) Margaret purchases all her food and clothing in the big city outside her residence.
• B) A small business owner frequently buys raw materials by using her bank's line of credit.
• C) Raymond cannot open his windows at times because he lives downwind from a mushroom farm.
• D) Felicia, an economics major, asks the most insightful questions in class.

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Definitions:

Quality Standards

Specific criteria set to ensure products, services, or processes meet both customer expectations and regulatory requirements.

Operations Management

The area of management concerned with designing, overseeing, and controlling the process of production and redesigning business operations in the production of goods or services.

Scientific Method

A systematic process for experimentation that is used to explore observations and answer questions.

Rigorously Gathered

Information or data collected with meticulous attention to detail and adherence to strict standards of accuracy.