hodasaadeddine15
hodasaadeddine15 hodasaadeddine15
  • 06-07-2020
  • Physics
contestada

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.

Respuesta :

imitateportsmouth imitateportsmouth
  • 11-07-2020

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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