When one more car enters a crowded highway it increases the travel times of all other drivers on the highway creating a negative externality.

Question

Quizplus · Accepted Answer

This is because the addition of one more car leads to traffic congestion, which slows down the movement of all the other drivers on the highway, causing a negative impact on their travel times. This negative impact is an example of a negative externality, which refers to a cost imposed on a third party as a result of an economic activity.

When One More Car Enters a Crowded Highway It Increases