The Clear Plastic Company's plant discharges large quantities of toxic chemicals into some groundwater sources. Residents in the surrounding area have higher medical bills because of Clear Plastic's pollution. These additional medical costs represent

Question

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The additional medical costs incurred by residents due to pollution from Clear Plastic Company's plant are a negative externality, as they represent a cost borne by the neighboring families due to the company's actions.

The Clear Plastic Company's Plant Discharges Large Quantities of Toxic