Suppose You Live in the Suburbs and Dump Your Garbage

question 75

Multiple Choice

Suppose you live in the suburbs and dump your garbage on your front lawn on a daily basis.

• A)Your actions hurt no one but yourself.
• B)Your actions constitute an external cost to your neighbors.
• C)Your actions constitute an external benefit to your neighbors.
• D)Your actions would not be considered a market failure.

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Definitions:

Break-even Price

The market price that a stock or commodity must reach for an investor to recover their initial investment without any profit or loss.

Mark-up

A percentage added to the cost of goods to cover overhead and profit, determining the selling price.

Retail Price

The price at which goods or services are sold to individual consumers in stores or online.

Retailer

A business or person that sells goods directly to consumers.