When the cost of producing a product is paid,at least in part,by someone other than the producer,the cost is referred to as
A) an external cost.
B) an external profit.
C) an external benefit.
D) an external/internal cost.
E) a public cost.

Question

Quizplus · Accepted Answer

An external cost refers to a cost that is incurred by a party as a result of the production or consumption of a good or service, but that is not reflected in the price of the product. This means that the cost is paid by someone other than the producer, such as the environment, society, or future generations. An example of an external cost is pollution caused by a factory, which affects the health of nearby residents and wildlife but is not factored in the cost of the products produced by the factory.

When the Cost of Producing a Product Is Paid,at Least