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Explain the Concept of Externality and Give an Example

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Explain the concept of externality and give an example.


Definitions:

Total Cost

The complete cost of production, including both fixed and variable costs, or the entire expense incurred in a transaction.

Price-Setting Process

The approach or methodology used by businesses to determine the selling price of their products or services.

Market Share

The percentage of an industry's sales that a particular company controls, indicating its size relative to its competitors.

Peer Delinquent Subculture

An antisocial youth subculture.

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