The concept of external cost is associated with a negative externality, but not with a positive externality.

Question

Quizplus · Accepted Answer

External costs are costs that are not borne by the parties involved in a transaction and are typically associated with negative externalities, such as pollution, where third parties bear the cost. Positive externalities, on the other hand, provide external benefits rather than costs.

The Concept of External Cost Is Associated with a Negative