Negative externalities are costs incurred by:
i.buyers
ii.sellers
iii.someone other than buyers or sellers
A) (i) only
B) (ii) only
C) (iii) only
D) both (i) and (ii)

Question

Quizplus · Accepted Answer

Negative externalities are costs that are borne by a third party who is neither the buyer nor seller of the product. For example, pollution from a factory affects the health of people living nearby, who are not involved in the buying or selling of the factory's products. Therefore, option (iii) is the correct choice.

Negative Externalities Are Costs Incurred By