Air pollution generated by a steel mill is an example of
A) a positive production externality.
B) a negative production externality.
C) a public good.
D) the free-rider problem.

Question

Quizplus · Accepted Answer

Air pollution from a steel mill is a negative production externality because it imposes a cost on third parties who are not directly involved in the production or consumption of the mill's products.

Air Pollution Generated by a Steel Mill Is an Example