Which of the following would most likely be considered a negative externality for a manufacturing firm?

Question

Quizplus · Accepted Answer

Air and water pollution as a result of manufacturing process would most likely be considered a negative externality for a manufacturing firm.The environment is used without charge as an ingredient in the production process (commonly as a receptacle for waste).Consequently,the product is underpriced.The producer and consumer do not pay the full social cost of the product,so those remaining costs are thrust on parties external to the transaction.

Which of the Following Would Most Likely Be Considered a Negative