An Externality Is _____

question 164

Multiple Choice

An externality is _____

• A)a cost of a transaction that is borne by the government.
• B)a benefit of a transaction that is enjoyed by the firms.
• C)a cost or benefit that arises when market price changes.
• D)any cost or benefit of a transaction that is not accounted for in the market price.
• E)the revenue generated by a firm.

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Definitions:

Breached

The violation of a law, duty, or agreement.

Writing Contracts

The process of formally documenting agreements between parties in written form, ensuring legal enforceability and clarity of terms.

Tender Delivery

The process of formally presenting goods or documents to a designated party, often in fulfillment of a contractual obligation.

Consequential Damage

Indirect losses that occur as a result of a breach of contract or other wrongful act, beyond the immediate damage or loss incurred.