Negative externality is also known as ?
Correct answer: A. external diseconomies
- A. external diseconomies
- B. marginal damage
- C. public goods
- D. resource curse
Explanation
A negative externality imposes an external cost on third parties and is therefore called an external diseconomy. Marginal damage measures the additional harm from one more unit, but is not the broader name for the externality.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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