Explain the Difference Between a Positive Production Externality and a Positive

question 239

Essay

Explain the difference between a positive production externality and a positive consumption externality.

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Definitions:

Net Operating Income

The profit a company generates from its normal business operations, excluding expenses and taxes.

Activity Variance

The difference between the budgeted amount for an activity and the actual amount spent.

Budgeting

The process of creating a plan to spend your money, outlining how much revenue a company anticipates receiving and how much it expects to spend over a specific period.

Actual Results

The real, achieved outcomes of activities, such as financial performance, compared against planned or projected outcomes.