The difference between the costs (or benefits)created by both technological and pecuniary externalities is that in both cases costs are imposed on _____,but for _____ they are external to the market while _____ are allocated within the market.
A)parties to the transaction;technological externalities;pecuniary externalities
B)parties to the transaction;pecuniary externalities;technological externalities
C)third parties;technological externalities;pecuniary externalities
D)third parties;pecuniary externalities;technological externalities

Question

Quizplus · Accepted Answer

Both types of externalities impose costs on third parties. However, technological externalities are external to the market and are not included in market transactions, while pecuniary externalities are allocated within the market and affect the prices and quantities of goods and services exchanged. Therefore, parties to the transaction are affected by pecuniary externalities, but not by technological externalities.

The Difference Between the Costs (Or Benefits)created by Both Technological