Asked by
Thomas Devine
on Oct 26, 2024Verified
A negative externality:
A) is any cost above the economic cost.
B) equals the social cost plus the firm's private cost.
C) is an uncompensated cost imposed by an individual or firm on others.
D) equals the opportunity cost minus the social costs.
Negative Externality
A cost experienced by a third party who did not choose to incur that cost, often related to environmental, social, or health issues.
Uncompensated Cost
Costs that occur when an action has effects, positive or negative, on third parties without those parties being compensated.
Social Cost
The total cost of an activity, including both private costs borne by the producer and external costs suffered by others.
- Acquire knowledge about the principle of negative externalities and their repercussions on societal health.
Verified Answer
WJ
Learning Objectives
- Acquire knowledge about the principle of negative externalities and their repercussions on societal health.