Negative externalities are the additional costs incurred by business due to the outside regulations placed by government.

Question

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Negative externalities are costs that are not accounted for by a business in their production or actions but are instead borne by society as a whole. These costs can be incurred by activities such as pollution or resource depletion and can harm health, the environment or natural resources. Government regulations aim to mitigate these negative externalities by ensuring that businesses take responsibility for their impacts and include those costs in their decision-making processes. So, negative externalities are not caused by government regulations, but rather by the activities of businesses themselves.

Negative Externalities Are the Additional Costs Incurred by Business Due