The costs of a market activity paid for by an individual engaged in the market activity are ________ costs.

Question

Quizplus · Accepted Answer

Internal costs are costs that are paid for by individuals engaged in a market activity. External costs are costs that are not borne by those engaging in the activity, such as pollution or congestion costs. Free-rider costs are costs that are imposed on others without payment or compensation, and common costs are costs that are shared by multiple individuals or groups. Social costs refer to the total costs to society, including both internal and external costs.

The Costs of a Market Activity Paid for by an Individual