A firm dumping pollutants into a stream,rendering the water unfit for use by those downstream,is an example of a(n)

Question

Quizplus · Accepted Answer

This is an example of an external diseconomy, which occurs when a firm's activities have a negative impact on those not directly involved in the production process. In this case, the firm's pollution of the stream creates costs (in the form of polluted water) for those downstream who are not involved in the production of the firm's goods.

A Firm Dumping Pollutants into a Stream,rendering the Water Unfit