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Which statement defines externality?
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Which statement defines externality?

User Ali Asgher Badshah
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2 votes

Answer:

D. It is the impact of production and consumption on unrelated third parties.

Step-by-step explanation:

User KyleLib
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It would be the impact of production and consumption on unrelated third parties that best defines the term externality. It is a consequence of an economic activity experienced by unrelated third parties; it can be either positive or negative.
User DaemonThread
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