Which of the Following Is an Example of an Externality

question 12

Multiple Choice

Which of the following is an example of an externality in the cigarette market?

• A)firsthand smoke
• B)secondhand smoke
• C)Increase in the price of tobacco
• D)Increase in the price of a competitors' cigarettes

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Definitions:

Recorded Equity

The total amount of owners' equity recorded in the financial statements, representing the residual interest in the assets of a company after deducting liabilities.