The cost imposed by an economic activity on others,who are not directly involved in the transaction,is referred to as:
A)a sunk cost.
B)an implicit cost.
C)an external cost.
D)resource overutilization.

Question

Quizplus · Accepted Answer

An external cost refers to the cost imposed by an economic activity on third parties who are not directly involved in the transaction. It is a negative externality that affects individuals or communities indirectly, such as pollution, environmental damage, or congestion. External costs are not considered in the market price of goods and services and can lead to market failure if they are not addressed through regulation or taxation. Therefore, option C is the correct answer.

The Cost Imposed by an Economic Activity on Others,who Are