Averting costs are __________________.

Question

Quizplus · Accepted Answer

Averting costs are a type of revealed preference because they are costs incurred to protect against potential harm or damage. They are also purchased market goods that affect a consumer's exposure to the ambient environment, such as air purifiers or water filtration systems. Finally, they can be used as a way to estimate willingness to pay by looking at the amount consumers are willing to spend to avoid negative environmental effects. Therefore, all of the above options are correct.

Averting Costs Are __________________