Many External Costs Occur Because

question 30

Multiple Choice

Many external costs occur because

• A) people do not pay the true cost of using a resource.
• B) people do not pay the private cost of using a resource.
• C) companies do not pay the market price for natural resources.
• D) companies pay more than the true cost of using a resource.

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Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

Operation

The day-to-day activities and procedures businesses employ to produce goods or services and function effectively.

Potential New Business

Opportunities or prospects that may lead to the inauguration or expansion of operations, representing potential sources of revenue or growth.

Worthwhile Investment

An investment that promises a good return for the amount of money or time put in.