If a Person Who Generates a Negative Externality Incorporates into His

question 48

Multiple Choice

If a person who generates a negative externality incorporates into his or her private cost-benefit calculations the effects that this externality will have on third parties, the externality has been

• A)substituted.
• B)accommodated.
• C)compounded.
• D)internalized.

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Definitions:

Existing Products

Goods or services that are currently available on the market, distinguished from newly developed or conceptual offerings.

Long Period

An extended duration of time, which can span years or even decades, often used in the context of investments or planning.

Isolated Inventor

An individual who develops new ideas or inventions independently, often without the support of an organization.

Inventions

Original devices, methods, or processes developed from the creative mind that have never been made before, offering new solutions.