In General,an Externality Is Created When

question 93

Multiple Choice

In general,an externality is created when

• A)people are affected (other than by price)by a transaction which they were not part of.
• B)firms produce a product of low quality and consumers don't like it.
• C)firms have to pay for pollution the environment.
• D)the government subsidizes education.

---

Definitions:

Higher-priced Shoes

Footwear that is sold at a premium due to factors like brand, quality, or design superiority.

Sales

The total amount of goods or services sold by a company within a specific period.

Manufacturing Costs

Total expenses involved in producing a product or operating a manufacturing business, including materials, labor, and overhead costs.

CCA Class

refers to the categorization of depreciable properties under the Capital Cost Allowance system for tax purposes in Canada, which determines the rate of depreciation.