Negative externalities arising from the production of a good
A)cause an increase in the demand for the good.
B)cause a decrease in the demand for the good.
C)impose costs on third parties.
D)bring private costs into equality with social costs.

Question

Quizplus · Accepted Answer

Negative externalities from the production of a good impose costs on third parties who are not directly involved in the production or consumption of the good, such as pollution affecting nearby residents.

Negative Externalities Arising from the Production of a Good