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Any cost that is impose to other with out any agreement is called external cost.
Example
Any industry or any organization who generate air pollution. so air pollution is a external cost. So these type of firm imposing external cost to the people and they have no any agreement between industry and affected people.
From
Muhammad Waqas Azeem
Toba Tek Singh, Pakistan
Leone Cormier
Wiki User
∙ 12y agoAny cost that is impose to other with out any agreement is called external cost.
Example
Any industry or any organization who generate air pollution. so air pollution is a external cost. So these type of firm imposing external cost to the people and they have no any agreement between industry and affected people.
From
Muhammad Waqas Azeem
Toba Tek Singh, Pakistan
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What is the Differences between internal and external cost?
Internal costs are costs that a business bases its price on. External costs are costs that are not included in what the business bases its price on Nicodem
Relationship between marginal social cost and marginal private cost?
The Marginal Social Cost (MSC) is the Marginal Private Cost (MPC) + the Marginal External Cost (MEC). As an example, a pulp and paper mill might produce paper using a supply curve of MPC = 4Q. The mill pumps its effluent into a river. The effluent then travels downstream and a village that gets its water form the river has to install purification systems. The installation of purification is an external cost borne by the village but attributable to the mill. Now if the mill took into account his external cost and factored it into its cost structure, thereby not allowing raw effluent to get into the river and saving the village the cost of installing purification systems, the company might find that MSC = 6Q (MEC = 2Q). No matter what the Demand function equals, the Equilibrium just went to a higher cost and lower output.
What is the firm's cost of external equity?
When a company raises new capical, normally it seeks the investment bankers for help. There are three general ways as debt, preferred stock and common stock. The interest that the banker gets is floation cost. For debt and preferred stock. it is very small, 1 percent, so we don't incorporate it into the cost of capital. But for common stock, the bankers meet higher risk, so the floation cost is higher. A firm's external equity is not its retained earnings.
What kind of relationship you postulate between short-run and long run average cost curves when these are not U shaped?
The type of relationship that you postulate between short-run and long-run average cost curves that is not U shaped is the external limiting relationship.
Why marginal costing method not Suitable to be used by manufacturer for external financial reporting and tax purpose?
I think..... In marginal costing method only variable cost is considered as product cost and fixed cost is not considered as product cost. But in reality product cost include fixed and variable, thus both variable and fixed costs should be considered while allocating cost. Marginal costing is used for inside reporting and absorption costing is used for outsider to clarify the real cost of product........ Am i right? Please confirm it
How much does an external DVD drive cost?
The cost of an external DVD drive depends on the requirements of the consumer. High end external drives can cost as much as $200, while less expensive ones can cost $50 or less.
What is the cost of external and internal BGP routes?
external 20 internal 200
Internalize an Externality?
to compensate an externality if it is an external cost then taxes will be imposed if it is an external benefit then subsidies will be imposed.
How much does external hard drive cost?
like 500
How much does an external battery for a laptop cost?
The price of external laptop batteries varies considerably, depending on make and model. The majority of external laptop batteries retail for between £20 and £100, but some cost in excess of £300.
How much does a Lacie 500GB external hard drives typically cost?
Lacie is a well-regarded hard drive manufacturer. Their 500 GB external hard drives cost around $80-$90.
What is the Difference between External Failure Costs and internal failure costs?
External failure cost is the cost incurred to fix the defects given by customer. Internal failure cost is the cost associated with internal verification activities like fixing the review comments or fixing the internal testing bugs.
What does the phrase internalizing an external cost mean?
Internalizing an external cost means incorporating the cost of negative externalities, such as environmental damage or health impacts, into the pricing of a product or service. This helps reflect the true cost of production and consumption by accounting for effects beyond the immediate transaction.
What are external and internal forces in health care?
high cost of health insurance, the technology
How much does it cost to replace a external house door?
well that would depend on where you shop
What is the Differences between internal and external cost?
Internal costs are costs that a business bases its price on. External costs are costs that are not included in what the business bases its price on Nicodem
The cost of external equity is greater than the cost of retained earnings because a. floatation costs on new equity b. capital gains tax on new equity c. interest expense d. risk premium?
The cost of external equity is higher because the floatation costs on new equity.
