Bad Weather That Results in the Reduced Size of a Corn

question 118

True/False

Bad weather that results in the reduced size of a corn crop is an example of a negative externality.

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Definitions:

Economic Profits

Profits exceeding the total costs of production, including both explicit and implicit costs, representing gains above what could be earned in the next best alternative use of resources.

Pure Monopolist

A market participant who exclusively controls the supply of a particular good or service, without competition or substitute products.

ATC

Average Total Cost, which represents the per-unit cost of production, including both fixed and variable costs.