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:

Malnourished

The condition of having insufficient or imbalanced nutrition, leading to health problems and impaired development.

Healthcare

An organized provision of medical care to individuals or a community, including prevention, diagnosis, and treatment of illnesses, injuries, and other physical and mental impairments.

Global Mediascape

The complex landscape of global media flows, including television, internet, and film, which shapes cultures and identities across borders.

Global Flow

The movement of goods, services, people, technology, and financial capital across borders, connecting distant regions of the world.