A Pecuniary Externality _____

question 12

Multiple Choice

A pecuniary externality _____.

• A)affects the prices facing the third parties on which the externality falls
• B)affects the products bought by third parties
• C)affects the production functions of third parties
• D)affects the production functions of producers of the externalities

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Definitions:

Rent-seeking

An economic concept describing the practice of gaining wealth without any contribution to productivity, typically by manipulating the social or political environment.

Market Protection

Measures implemented by a government to shield domestic industries from foreign competition, often through tariffs, quotas, or subsidies.

Government Grants

Funds provided by the government to individuals or organizations for specific purposes without a requirement for repayment.

Average Cost

Average Cost refers to the total cost of production divided by the number of units produced, effectively calculating the cost per unit.