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Externalities in pricing goods and services

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'X' Ltd. extracts gold from Bendigo region. It never considers externalities in its financial reporting. The company is planning to incorporate externalities in its 2021 financial reports. You are requested to provide an explanation to the Board of Directors about externalities. In explaining, you should provide definition of externalities, classify different externalities and interpret the consequences of not considering externalities in pricing goods and services.

Reference no: EM132657526

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