Unintended Costs That Are Imposed on Third Parties as a Result

question 2

Multiple Choice

Unintended costs that are imposed on third parties as a result of an economic activity are called:

• A) marginal costs.
• B) direct costs.
• C) negative externalities.
• D) positive externalities.

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Definitions:

Monopolistic Competition

A market structure characterized by many firms selling differentiated products, with few barriers to entry and some degree of market power.

Economic Profit

The differential between total receipts and overall disbursements, accounting for both direct and indirect expenditures.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition based on product differentiation as well as price.

Panel (A)

This term is ambiguous without context but usually refers to a specific subset or group within a broader survey or study, denoted as "A" for distinction.