A person whose house has declined in value as a result of a nearby factory's fumes is a third party to the market associated with the factory.

Question

Quizplus · Accepted Answer

The person is considered a third party because they are not directly involved in the transactions or operations of the factory (which constitutes the market in question) but is affected by its externalities, in this case, pollution leading to a decline in property value.

A Person Whose House Has Declined in Value as a Result