Melissa Engages in an Activity That Influences the Well-Being of a Bystander

Melissa engages in an activity that influences the well-being of a bystander. In order for Melissa's activity to give rise to an externality, it must be the case that

A) Melissa fails to recognize the impact of her activity on the bystander's well­being.
B) the bystander fails to recognize the impact of Melissa's activity on his or her well­being.
C) the well­being of the bystander is adversely impacted by Melissa's activity.
D) Melissa neither pays nor receives any compensation for her activity.

Correct Answer:

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