An example of ________ is a power plant generating water pollution.
A) a positive production externality
B) a negative production externality
C) a public good
D) the free-rider problem

Question

Quizplus · Accepted Answer

A negative production externality occurs when the production of a good or service imposes costs on third parties not involved in the market transaction, such as environmental pollution from a power plant.

An Example of ________ Is a Power Plant Generating Water