Which of the Following Is an Example of an Externality

question 300

Multiple Choice

Which of the following is an example of an externality?

• A) Annie purchases a handbag.
• B) Bob's dog barks loudly during the night waking his neighbors.
• C) Clark sells a book to Calvin.
• D) David watches a scary movie.

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Definitions:

Costly Negotiations

Negotiation processes that involve significant expenses, time, or resources, which can affect the willingness of parties to reach an agreement.

High-value

Refers to goods or services that have a substantial value in monetary terms or significant importance to a particular process or situation.

Expected Revenue

The amount of money a business anticipates receiving from its activities or sales within a specific period.

Low-value

Refers to items or services perceived as having a lower worth or importance, often associated with lower prices or quality.