ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is an example of an external cost?
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the cost of industrial pollution
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the cost of buying components from suppliers
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the cost of bringing about a merger
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a company’s transport costs
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Explanation:
Detailed explanation-1: -The main externalities of air pollution include: Economic Costs. They include a wide range of externalities like damage to property, superstructures and infrastructure, and loss of productivity of people and crops.
Detailed explanation-2: -External costs are costs generated by transport users and not paid by them but by the society as a whole such as congestion, air pollution, climate change, accidents, noise but also up-and down-stream processes, costs for nature and landscape or additionnal costs in urban areas.
Detailed explanation-3: -An external cost is a cost not included in the market price of the goods and services being produced, i.e. a cost not borne by those who create it.
There is 1 question to complete.