Which of the following illustrates the concept of externalaties? A.A hurricane destroys a production plant causing the owner of the plant to spend more money rebuilding B.Pollution by a coal mining plant causes a farmer to spend more money on fertilizer to improve his crop C.Increase in the price of sugar raises the price paid by consumers of soda, thereby disadvantaging these consumers D.Smoking harms the health of the smoker

An externality is the benefit or costs associated with an activity that is born by the third party…

Answered: Which of the following illustrates the…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter8: Market Failure

Section: Chapter Questions

Problem 1P

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Which of the following illustrates the concept of externalaties?

	A.	A hurricane destroys a production plant causing the owner of the plant to spend more money rebuilding
	B.	Pollution by a coal mining plant causes a farmer to spend more money on fertilizer to improve his crop
	C.	Increase in the price of sugar raises the price paid by consumers of soda, thereby disadvantaging these consumers
	D.	Smoking harms the health of the smoker

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