A factory in your community dumps waste products into a nearby river,polluting the water and killing fish.By so doing,the factory imposes a(n)__________ on you and your neighbors.

Question

Quizplus · Accepted Answer

The term external cost refers to a cost that is imposed on a third party who did not choose to incur that cost. In this case, the factory's decision to dump waste products into the river is not only costing the factory, but it is also causing harm and cost to the people in the surrounding community who rely on the river as a source of water, recreation or fishing. As such, the factory is imposing an external cost on the community.

A Factory in Your Community Dumps Waste Products into a Nearby