An external cost is typically referred to as a:
A)societal drain.
B)negative externality.
C)negative cost.
D)network externality.

Name: An external cost is typically referred to as a: A)societal drain. B)negative externality. C)negative cost. D)network externality.
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Question

Quizplus · Accepted Answer

A negative externality occurs when a cost is incurred by third parties due to an economic transaction, without these parties being compensated. This is what is commonly referred to as an external cost.

An External Cost Is Typically Referred to as A