Question #47681

An externality is ?

A) the benefit that accrues to the buyer in a market

B) the cost that accrues to the seller in a market

C) none of these answers

D) the compensation paid to a firm’s external consultants.

E) E. The uncompensated impact of one person’s actions on the well-being of a bystander

Answer: An externality is E. The uncompensated impact of one person’s actions on the well-being of a bystander.

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