Which of the following would be an external cost associated with the manufacture of cigarettes?
A) Price of a pack of cigarettes.
B) Price of leaf tobacco.
C) Cost to the government of the hospital expenses of indigent smokers.
D) Cost to the employer of the higher health insurance premiums due to the hiring of a smoker.
E) Cost to the employer of the extra effort lost due to the increased missed days of work as a result of smoking.

Question

Quizplus · Accepted Answer

External costs are costs not borne by the producer or consumer but by society, such as healthcare costs for smoking-related illnesses.

Which of the Following Would Be an External Cost Associated