Which of the Following Does NOT Contain an Externality

question 73

Multiple Choice

Which of the following does NOT contain an externality?

• A) I sell you an ice cream and you drip it all over the person sitting next to you.
• B) I sell you an ice cream and it gives you a headache.
• C) I sell you an ice cream and you share it with your friend.
• D) I give you an ice cream and you share it with a friend.

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Definitions:

Aggregation

The process of combining multiple pieces of data or information to create a summary or composite view.

Safety Inventory

Additional stock kept beyond expected demand to protect against variability in market demand or supply chain disruptions.

Normally Distributed

Refers to a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Standard Deviation

A statistical metric that quantifies the dispersion or spread of a dataset relative to its mean, indicating consistency or variability.