An Example of External Diseconomy Would Be

question 9

Multiple Choice

An example of external diseconomy would be

• A) living downwind from a steel mill.
• B) a situation where total social costs exceeded total revenues from a hazardous product.
• C) a situation in which general costs to the public are not internalized in a firms production costs.
• D) All of the above.
• E) None of the above.

---

Definitions:

Balance Sheet

A financial report detailing a company's assets, liabilities, and equity of shareholders at a given moment.

Monthly Amount

A specific sum of money calculated or paid on a monthly basis for various financial obligations or income sources.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred, ensuring that financial statements reflect accurate values.

Depreciation

A method of allocating the cost of a tangible asset over its useful life.