Question: Define (a) Externalities and (b) Sunk costs, and then give examples of each that might be involved in a proposal by an energy company to

Define
(a) Externalities and
(b) Sunk costs, and then give examples of each that might be involved in a proposal by an energy company to build a new coal-fired electric power generating unit. How would these factors be worked into the analysis?

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Externalities relate to effects that a given project might have on the firms other assets More broadly externalities relate to effects within and outs... View full answer

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