Which of the following is NOT an example of an externality? Cancer-causing chemicals are dumped into the drinking water supply of a city. A cookie company emits a wonderful aroma in the air that makes people smile. The neighbor's wind chimes interfere with your sleep. A firm lays off 100 workers.
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Step 1: An externality is a cost or benefit that affects a party who did not choose to incur that cost or benefit. Show more…
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