If Two Parties Negotiating a Private Solution to an Externality

question 16

Multiple Choice

If two parties negotiating a private solution to an externality cost employ a lawyer to help draft the contract, the lawyer's costs are a type of:

• A)transport cost
• B)legal cost
• C)negative consumption externality
• D)a transaction cost

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Definitions:

Schizophrenia

A chronic mental health disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Tardive Dyskinesia

A neurological syndrome characterized by repetitive, involuntary, purposeless movements caused by long-term use of certain medications, particularly antipsychotics.

Psychological Disorder

A pattern of behavioral or psychological symptoms that impact multiple areas of life and create distress for the person experiencing these symptoms.

Schizophrenia

A persistent and intense psychological disorder marked by altered thoughts, perceptions, feelings, speech, self-awareness, and actions.