Suppose that large scale pork production has the potential to create groundwater pollution. Why might this type of pollution be considered an externality?
A) the groundwater pollution reduces the cost of large scale pork production
B) the economic impact of a large-scale pork production facility is localised in a small geographic area
C) the pollution has the potential for creating a health risk for water users in the region surrounding the pork production facility
D) consumers will not reap the benefits of lower production cost from large-scale pork production

Question

Quizplus · Accepted Answer

Groundwater pollution from pork production is an externality because it imposes a cost (health risk) on third parties (water users) who are not involved in the production or consumption of pork.

Suppose That Large Scale Pork Production Has the Potential to Create