A Negative Externality

question 183

Multiple Choice

A negative externality:

• A)is any cost above the economic cost.
• B)equals the social cost plus the firm's private cost.
• C)is an uncompensated cost imposed by an individual or firm on others.
• D)equals the opportunity cost minus the social costs.

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Definitions:

Order Fulfillment Department

A division within a company responsible for processing customer orders and ensuring products are delivered to customers efficiently and accurately.

Variable Costs

Costs that vary in direct proportion to the level of production or business activity.

Fixed Costs

Costs that do not vary with the level of production or sales, such as salaries, rent, and insurance.

Logistics Department

The division within a company that is responsible for the management of the movement of goods and materials.