Negative externalities are costs incurred by: I.buyers
II)sellers
IiI)someone other than buyers or sellers

Question

Quizplus · Accepted Answer

Negative externalities are costs incurred by someone other than buyers or sellers. This means that a third party who is not involved in the transaction may bear the costs of the transaction. For instance, pollution caused by a firm's production processes imposes costs on the environment and possibly on other individuals who live in the area. These costs are not borne by the buyers or sellers but by others, making it a negative externality. Choice C, (iii) only, correctly captures this definition.

Negative Externalities Are Costs Incurred By: I.buyers