When a person drives a car that pollutes the air the

Question

Quizplus · Accepted Answer

When a person drives a car that pollutes the air, the private cost of consuming the car's services is low, as the person only pays for the fuel and maintenance. However, the social cost of consuming the car's services exceeds the private cost because the pollution from the car causes negative externalities such as health problems, environmental damage, and increased healthcare costs. These external costs are borne by society as a whole, not just the individual driving the car. Therefore, the social cost of consuming the car's services exceeds the private cost.

When a Person Drives a Car That Pollutes the Air