An External Cost Is

question 86

Multiple Choice

An external cost is

• A) MSC + MC.
• B) MSC ‐ MC.
• C) MSC/ MC.
• D) MSC × MC.

---

Definitions:

Purely Competitive Markets

Markets characterized by many buyers and sellers, homogeneous products, and no single participant having market control.

Government Action

Measures or initiatives undertaken by the governmental bodies to address societal, economic, or international issues.

Large Profit

A significantly high net income resulting from the difference between revenue and expenses.

Competitive Market Economy

A market structure characterized by many buyers and sellers, free entry and exit, and a product for which each firm is a price taker.