Q.

An externality is defined as

A. an additional cost imposed by the government on producers.
B. a cost or benefit caused by a producer that is not financially incurred or received by that producer.
C. an additional gain received by consumers from decisions made by the government.
D. the additional amount consumers have to pay to consume an additional amount of a good or service.
Answer» B. a cost or benefit caused by a producer that is not financially incurred or received by that producer.

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