A negative externality: A) is a cost to a bystander. B) is a cost to the buyer. C) is a cost to the seller. D)

Question

A negative externality:

A) is a cost to a bystander.
B) is a cost to the buyer.
C) is a cost to the seller.
D) exists with all market transactions.

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RobertKer 4 years 2021-08-21T20:56:25+00:00 1 Answers 25 views 0

Answers ( )

  1. Ladonna
    0
    2021-08-21T20:58:10+00:00
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    Answer:

    A) is a cost to a bystander.

    Explanation:

    A negative externality is defined as the difference between the social cost and an economic agent from the private cost of an action.

    A negative externality is a cost to a bystander as negative externality occurs when a transaction between a buyer and seller affects third party with a loss, which has no involvement in the transaction.

    Hence, the correct option is A.

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