Suppose that person A and B have a microeconomics class toge…
Suppose that person A and B have a microeconomics class together and they like to talk to each other during class. This activity has costs and benefits for this group (private costs and benefits). This group is disruptive to the learning environment for their classmates, and so their behavior imposes a cost on the rest of the class, termed an external cost. This group (i.e., person A and B) is imposing a ____________ on their other classmates.