Externalities Are Unintended Costs or Benefits That Are Imposed on Unsuspecting

question 155

Multiple Choice

Externalities are unintended costs or benefits that are imposed on unsuspecting people and that result from:

• A) poor planning.
• B) intentional damages.
• C) excessive costs.
• D) excessive losses.
• E) the economic activity of others.

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Definitions:

Freight-Absorption Pricing

Freight-Absorption Pricing is a strategy where a seller absorbs all or part of the freight charges to attract customers from distant locations.

Buyers

Individuals or entities that purchase goods or services for personal use, for resale, or for use in manufacturing or provision of services.

Basing-Point Pricing

Basing-point pricing is a pricing system where the price of goods includes delivery from a specific location, regardless of the actual shipping point to the buyer.

Geographical Locations

Refers to specific places or positions on Earth's surface, identified by coordinates like latitude and longitude.