If it costs $2,000 to pick up all the litter along a 100-mile stretch of highway, then the cost of the negative externality associated with the litter is
A) $0
B) more than $0, but less than $2,000
C) $2,000
D) more than $2,000, but finite
E) infinite

Question

Quizplus · Accepted Answer

The cost of the negative externality associated with the litter is $2,000, as this is the amount spent to mitigate the effects of the littering, directly reflecting the cost imposed on society.

If It Costs $2,000 to Pick Up All the Litter