A(n)_____ cost is a production cost not paid by a firm or its customers,but by members of society.

Question

Quizplus · Accepted Answer

External cost, also known as a negative externality, is a cost that is not accounted for by a firm or its customers, but is instead borne by members of society. Examples of external costs include pollution or traffic congestion. Internal costs are costs incurred by a firm for its own production, while private costs are costs incurred by an individual or firm for their own consumption. Extraterritorial costs are not a recognized concept in economics.

A(n)_____ Cost Is a Production Cost Not Paid by a Firm