Activities That Indiscriminately Impose Costs on Others Are Externalities

question 157

True/False

Activities that indiscriminately impose costs on others are externalities.

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Definitions:

Marginal Cost

The cost added by producing one additional unit of a product or service, which is crucial for decision-making on production levels.

First-Move Ability

The strategic advantage gained by being the initial entrant into a new market or business segment.

Marginal Revenue

The additional income gained from selling one more unit of a good or service.

Cournot Duopoly

A model of competition between two firms, in which each firm decides the quantity to produce independently and simultaneously with the goal of maximizing profit.