An External Cost Is Typically Referred to as A

question 1

Multiple Choice

An external cost is typically referred to as a:

• A)societal drain.
• B)negative externality.
• C)negative cost.
• D)network externality.

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Definitions:

Economic Inefficiencies

Situations where resources are not used optimally according to consumer preferences, often leading to wasted resources or unmet demands.

Product Variety

Refers to the different types and variations of products available in a market or offered by a company.

Excess Capacity

A scenario where a firm’s production capability exceeds the demand for its product, often leading to inefficiency and increased costs.

Product Variation

The process of making slight adjustments to a product's features, design, or offerings to differentiate it from competitors’ products.