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Jacob Pays $5,000 to Paint His House Because Pollution from a Nearby

Question 23

Multiple Choice

Jacob pays $5,000 to paint his house because pollution from a nearby factory damaged the paint.To the factory,the $5,000 cost is


A) a private cost and not an external cost.
B) an external cost and not a private cost.
C) both a private cost and an external cost.
D) neither a private cost nor an external cost.
E) a private benefit because viewers will benefit from watching the extra hour of the show.

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