Give an Example of an External Cost

question 87

Essay

Give an example of an external cost. Explain why markets don't provide the optimal quantity of goods and services that have external costs.

Understand how to calculate labor efficiency variance.

Identify the factors affecting raw materials price variance.

Identify the factors affecting raw materials quantity variance.

Understand how to calculate variable overhead efficiency variance.

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Definitions:

Platform Capitalism

describes an economic system where platforms (e.g., social media, ride-sharing apps) play a central role in mediating economic transactions and generating value, often at the expense of traditional labor relations.

Algorithmic Management

The use of computer algorithms and software to manage, direct, and evaluate work and employees, often associated with gig economy platforms and data-driven decision-making.

Technological Biases

Technological biases are inherent prejudices or inclinations in the design, development, and deployment of technology that reflect the values, beliefs, or interests of their creators, which may inadvertently or deliberately marginalize certain groups.

Data Analytics

The process of examining datasets to draw conclusions about the information they contain, increasingly using specialized systems and software for insights, trends, and decision-making.