An External Cost Is

question 90

Multiple Choice

An external cost is:

• A) a cost paid by the consumer or the producer.
• B) a cost paid by people other than the consumer or the producer trading in the market.
• C) the cost to everyone.
• D) the cost of reaching an agreement.

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Definitions:

Poisson Process

A stochastic process that models the occurrence of events randomly distributed in time or space.

Past Arrivals

The historical record of entities or individuals arriving or being accessed in a given scenario or system.

Future Arrivals

Refers to items, objects, or events that are expected or forecasted to occur or be received at a future date.

Exponentially Distributed

Describes a continuous probability distribution often used in statistics to model time until an event occurs, characterized by its constant rate of decay or growth over time.