A cost that arises from the production of a good that is paid by someone who did not participate in the production is called
A) a free rider.
B) an externality.
C) rent seeking.
D) a public failure.

Question

Quizplus · Accepted Answer

An externality is a cost or benefit that affects a party who did not choose to incur that cost or benefit, often arising from production or consumption activities.

A Cost That Arises from the Production of a Good