Asked by

Mindy Fambrough
on Dec 11, 2024

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Which of the following provides an example of an externality?

A) a paper pulp mill releasing pollution into the atmosphere
B) persons driving during a busy rush hour
C) a drunk driver operating a car on a public highway
D) all of the above

Externality

A cost or benefit caused by a producer that is not financially incurred or received by that producer.

Pollution

The contamination of the environment by harmful substances or waste, leading to adverse effects on living organisms and ecosystems.

Drunk Driver

An individual who operates a vehicle under the influence of alcohol, posing significant risks to safety and public health.

  • Identify and explain externalities and their effects on market outcomes.
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RA
Rasha AbbasDec 15, 2024
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