Asked by
Austin Tuttle
on Nov 25, 2024Verified
In a situation where an externality occurs, the "third party" refers to those who
A) buy the product from others.
B) produce the product for others.
C) trade the product with others outside the nation or community.
D) are not directly involved in the transaction or activity.
Externality
A cost or benefit from production or consumption that accrues to someone other than the immediate buyers and sellers of the product being produced or consumed (see negative externality and positive externality).
Third Party
An individual or group besides the two primarily involved in a transaction or legal matter, sometimes involved as an intermediary or independent party.
Transaction
An exchange or transfer of goods, services, or funds between two or more parties.
- Understand the concept and significance of externalities in economics.
Verified Answer
AM
Learning Objectives
- Understand the concept and significance of externalities in economics.