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cost externality

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Which of the following is not an example of a cost externality?

a) the dumping of industrial waste into a lake
b) unsightly billboards
c) a neighbor that blasts his stereo system
d) the building of a new type of jet fighter bomber
e) all of the above

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Solution Summary

Externalities are briefly defined.

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As per tutor 2 u, "Externalities are common in virtually every area of economic activity. They are defined as third party (or spill-over) effects ...

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