Externalities Are Defined as

question 82

Multiple Choice

Externalities are defined as

• A)any transaction external to the firm
• B)costs or benefits that fall on third parties
• C)policies that firms undertake to sell products outside the country
• D)managers' dealings with stockholders outside the firm
• E)costs of maintaining plant and equipment to avoid the scrutiny of external auditors

---

Definitions:

Unforeseen Shortage

A sudden and unexpected lack of necessary supplies or resources.

Recycled Metals

Metals that have been processed and reformed from previously used materials to reduce waste and environmental impact.

All-Weather

Designed to operate or remain usable in all types of weather conditions.

Communications System

The assembly of hardware, software, and protocols that enable the transmission of data, voice, and video between entities.