An Example of an Activity That Generates an External Cost

question 133

Multiple Choice

An example of an activity that generates an external cost is

• A) national defence services.
• B) planting flowers along an interstate highway.
• C) eating an apple.
• D) dumping soapsuds into a trout stream.

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Definitions:

Company Merger

The process by which two or more companies combine to form a single entity, often aiming to increase market share, reduce costs, or expand into new markets.

Senior Management

The highest level of management of an organization, responsible for the overall direction and strategy.

Grapevine

An informal, unofficial, and personal communication network within an organization.

Formal Network

An official system of communication and relationships within an organization designed to achieve specific goals.