The social cost of pollution includes the private costs of the producers plus the costs to those bystanders adversely affected by the pollution.

Question

Quizplus · Accepted Answer

The social cost of pollution encompasses both the private costs incurred by producers (such as production and mitigation expenses) and the external costs borne by third parties or the public, who are adversely affected by the pollution but are not directly involved in the economic transaction.

The Social Cost of Pollution Includes the Private Costs of the Producers