Externalities can be produced by ____________,as well as ____________.
A)individuals;firms
B)market prices;market incomes
C)oceans;streams
D)none of the above

Question

Quizplus · Accepted Answer

Externalities can be produced by both individuals and firms, as they may create positive or negative effects on others that are not reflected in the market prices or incomes. For instance, an individual who throws litter on the street generates a negative externality by polluting the environment and reducing the quality of life of others. Similarly, a firm that emits pollutants into the air or water may harm the health and property of nearby residents, without compensating them for the damages.

Externalities Can Be Produced by ____________,As Well as ____________

Externalities Can Be Produced by ,As Well as