How Are Externalities Defined

question 9

Multiple Choice

How are externalities defined?  

• A) as any transaction external to the firm 
• B) as costs or benefits that fall on third parties 
• C) as policies that firms undertake to sell products outside the country 
• D) as managers' dealings with shareholders outside the firm

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Definitions:

Objective Food Binge

An excessive eating episode where the amount of food consumed is objectively large, distinct from perceptions of overeating.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, is a handbook used by healthcare professionals for diagnosing mental disorders.

Prognosis

The prediction of the likely course and outcome of a disease or condition, often based on the average progress in similar cases.

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by compensatory behaviors such as purging or excessive exercise.