Question

A firm dumps dioxin in a river,thereby severely polluting the river.The cost of the water pollution is
i.zero for the firm.
ii.an external cost.
iii.part of the marginal social cost

Accepted Answer

A)   i only
B)   ii only
C)   iii only
D)   ii and iii
E)   i, ii, and iiiF) A) and D)
G) A) and E)

Exam 10: Externalities

A firm dumps dioxin in a river,thereby severely polluting the river.The cost of the water pollution is i.zero for the firm. ii.an external cost. iii.part of the marginal social cost

Correct Answer
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Exam 10: Externalities

A firm dumps dioxin in a river,thereby severely polluting the river.The cost of the water pollution is i.zero for the firm. ii.an external cost. iii.part of the marginal social cost

Correct AnswerverifiedShow Answer

Correct Answer
verified