The cost of producing a good or service that is paid by people other than the producers is
A) represented by the supply curve.
B) an external cost.
C) represented by the demand curve.
D) the marginal cost.

Question

Quizplus · Accepted Answer

An external cost, also known as a negative externality, is a cost associated with producing a good or service that is not borne by the producer but by other people or society at large.

The Cost of Producing a Good or Service That Is