Many external costs occur because
A) people do not pay the true cost of using a resource.
B) people do not pay the private cost of using a resource.
C) companies do not pay the market price for natural resources.
D) companies pay more than the true cost of using a resource.

Question

Quizplus · Accepted Answer

External costs occur when the full cost of using a resource is not reflected in the price paid by the user, leading to overconsumption and negative impacts on others or the environment.

Many External Costs Occur Because