What Is an Externality? Explain How Someone Receiving a Meningitis

question 4

Essay

What is an externality? Explain how someone receiving a meningitis vaccination is an example of an externality in the market for health care.

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Definitions:

Debt-to-Equity Ratio

This ratio demonstrates the balance between debt and equity shareholders' equity in financing a company's resources.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Accounts Receivable

This is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its customers by comparing net credit sales to average accounts receivable.