Examlex
A source emits sound at a fixed constant frequency f .
If the source moves away from you, the frequency you hear is lower than f .
Negative Externality
A cost imposed without compensation on third parties by the production or consumption of sellers or buyers. Example: A manufacturer dumps toxic chemicals into a river, killing fish prized by sports fishers. Also known as an external cost or a spillover cost.
Spillover Cost
A cost incurred by someone who is not a direct participant in a transaction, often referring to negative externalities resulting from economic activities.
Allocative Efficiency
occurs when resources are distributed in a manner that results in the optimal combination of goods and services produced to match consumer preferences.
Productive Efficiency
The production of a good in the least costly way; occurs when production takes place at the output level at which per-unit production costs are minimized.
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