Buyers and sellers neglect the external effects of their actions when deciding how much to demand or supply.

Name: Buyers and sellers neglect the external effects of their actions when deciding how much to demand or supply.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Buyers and sellers typically focus on their own costs and benefits when making decisions, often neglecting the external effects (externalities) of their actions on others not directly involved in the transaction.

Buyers and Sellers Neglect the External Effects of Their Actions