A negative externality is a cost that individuals or firms impose on others without having to pay compensation.

Name: A negative externality is a cost that individuals or firms impose on others without having to pay compensation.
Brand: Quizplus
Rating: 4.9 (48 reviews)

Question

Quizplus · Accepted Answer

A negative externality is a cost that is not borne by the individual or firm responsible for it, but instead is imposed on others who have no control over the situation. This can lead to inefficient outcomes and a lack of proper pricing signals in the market.

A Negative Externality Is a Cost That Individuals or Firms