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Which of These Consumption Activities Will Most Likely Impose an External

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Which of these consumption activities will most likely impose an external cost?


Definitions:

Inputs

Resources used in the production process to generate outputs, including labor, capital, and materials.

Output

The total amount of something produced by a person, machine, or industry.

Returns To Scale

An economic concept describing how output changes in response to a proportional change in all inputs; indicating constant, increasing, or decreasing returns to scale.

Production Function

A mathematical equation that describes the maximum amount of output that can be obtained from a given set of inputs.

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