In a Class Discussion, William Was Asked to Give a Concise

question 65

Multiple Choice

In a class discussion, William was asked to give a concise definition of externality. Which of the following would he give?

• A) the cost of doing business
• B) the negative effect of recycling
• C) the alternative to internal production runs
• D) a private company cost imposed on the public at large

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Definitions:

Nondiscriminating Natural Monopoly

A market condition where a single firm can supply the entire market's demand for a good or service at a lower cost than any competitor, without price discrimination.

Marginal Cost

The cost of producing one additional unit of a product or service, a critical concept in economic decision-making.

Average Total Cost

The total cost of production (fixed costs plus variable costs) divided by the quantity of output produced, representing the per unit cost.

U.S. Internet Search Market

The segment of the Internet industry in the United States that involves search engines and their market dynamics, including competition and market share.