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.

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Definitions:

Comparative Financial Statement

Financial statements that provide financial data for multiple periods, facilitating the analysis of trends over time.

Current Ratio

A financial ratio that expresses the relationship between current assets and current liabilities, computed by dividing current assets by current liabilities.

Marketable Securities

Financial instruments that can be easily converted into cash, often used for short-term investments by companies.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.