Which of the Following Is an Example of an Externality

question 55

Multiple Choice

Which of the following is an example of an externality?

• A)A paper mill dumps waste into the river.
• B)A neighbor's loud music disrupts sleep.
• C)A drunk driver causes an accident that injures another person.
• D)All of the above are correct.

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Definitions:

Market Share

The share of a market dominated by a specific company or product, commonly represented as a proportion of the overall sales in that market.

Payoff Matrix

A table that shows the potential outcomes or payoffs from different decisions made by players within a game, used in game theory to analyze strategies.

Duopoly

A market structure where two companies dominate the market for a particular product or service.

Joint Profits

The combined earnings or profits generated by a partnership or collaboration between two or more entities or firms.