An External Cost Is Imposed When an Action Imposes Costs

question 29

True/False

An external cost is imposed when an action imposes costs on others outside the context of market exchange.

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Definitions:

Crash Cost

The extra expense incurred to reduce the duration of a project, often through the addition of resources or overtime work.

Normal Time

Normal time is a measure of the time required to complete a task or operation under normal working conditions, often used in time and motion studies to set standards and expectations.

Crash Duration

The shortest possible time to complete a task or project phase by allocating maximum resources, often resulting in increased costs.

CPM Network

Critical Path Method Network is a project management tool that identifies key tasks and estimates the shortest completion time for a project by highlighting critical path activities.