If a Negative Externality Results from the Refining of Oil

question 83

Multiple Choice

If a negative externality results from the refining of oil, what can be said of the cost of production as seen by the oil refinery?

• A) It does not include the external cost.
• B) It includes the external benefit.
• C) It includes the external cost.
• D) It does not include the external benefit.

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Definitions:

Welded Rhyolite

Is a type of volcanic rock that has been superheated and compacted under extreme conditions, resulting in a dense, hard rock.

Calderas

Large, usually circular depressions in the ground caused by volcanic activity, specifically the collapse of a magma chamber after a volcanic eruption.

Caldera-forming Eruption

A volcanic eruption significant enough to collapse the summit area and form a large, basin-like depression called a caldera.

Minoan

Relating to the Bronze Age civilization centered on Crete (circa 2600–1400 BC), known for its advanced culture, art, and architecture, including the palace at Knossos.