Having a bottle of Freon cost a consumer $2,000 to pay for the damage it does to the ozone layer when it is eventually released into the environment is an example of adding in

Question

Quizplus · Accepted Answer

This is an example of adding in external costs, which are costs not reflected in the market price of goods or services but borne by society when the environment is damaged. In this case, the damage to the ozone layer by Freon release is an external cost not included in its purchase price.

Having a Bottle of Freon Cost a Consumer $2,000 to Pay