A company earns $200,000 in profit.The total costs paid by the firm are $800,000.Production of the goods contaminate the by river and small lakes,which reduces the profits of the salmon fishermen by $90,000.The external cost to society of the company's production is ________.
A)$90,000
B)$200,000
C)$600,000
D)$110,000

Question

Quizplus · Accepted Answer

The external cost to society is the cost imposed on third parties, which in this case is the $90,000 loss in profits for the salmon fishermen due to contamination.

A Company Earns $200,000 in Profit