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A corporation has been steadily losing money on one of its product lines.The factory used to produce that brand cost $20 million to build.The firm now is considering an offer to buy that factory for $15 million.Which of the following statements about the decision to sell or not is correct?
Positive Externality
A beneficial effect experienced by a third party as a result of an economic transaction or activity between others.
Negative Externality
A cost that affects a party who did not choose to incur that cost, often a byproduct of production or consumption.
Public Good
A good that is non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from its use and one person's use does not reduce availability to others.
Total Damage
The cumulative impact or cost resulting from an event or series of events, often used in the context of natural disasters or accidents.
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