An Externality Can Best Be Defined as

question 289

Multiple Choice

An externality can best be defined as

• A) a party not directly involved in a transaction.
• B) a consequence of a transaction that spills over to affect third parties.
• C) a right of an owner to use and exchange property.
• D) a cost associated with the production of one more unit of output.

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Definitions:

Jargon

Specialized or technical language used by a particular group or profession that may be difficult for outsiders to understand.

Jargon

Specialized language used by a particular profession or group that may be difficult for others outside the group to understand.

Ineffective Communication

The failure to convey information or ideas effectively, resulting in misunderstandings or lack of clarity.

Organizational Members

Individuals who are part of an organization, including employees, managers, and stakeholders, and contribute to its mission and goals.