The pollution emitted by a power plant is an example of a detrimental externality.

Question

Quizplus · Accepted Answer

A detrimental externality occurs when the production or consumption of a good or service imposes costs on third parties who are not involved in the transaction. The pollution emitted by a power plant is an example of a detrimental externality because it can cause harm to people and the environment who are not involved in the production or consumption of the electricity generated by the plant.

The Pollution Emitted by a Power Plant Is an Example