An Externality Is Defined as

Multiple Choice

An externality is defined as

A) an additional cost imposed by the government on producers.
B) an additional gain received by consumers from decisions made by the government.
C) a cost or benefit that arises from production and falls on someone other than the producer, or a cost or benefit that arises from consumption and falls on someone other than the consumer.
D) a marginal social cost.
E) the additional amount consumers have to pay to consume an additional amount of a good or service.