The Existence of an Externality Is Proof That There Is

question 90

Multiple Choice

The existence of an externality is proof that there is a(n) :

• A) market failure.
• B) undervaluation of a good.
• C) undervaluation of a cost.
• D) property dispute.
• E) free-rider problem

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Definitions:

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.