Question

The Black Ash Steel Companyʹs plant belches large quantities of noxious fumes and black ash into the air. Residents in the surrounding area have higher medical bills because of Black Ashʹs pollution. These additional medical costs represent

A) a positive externality.

B) a negative externality.

C) the companyʹs private costs.

D) the neighboring familiesʹ external costs.

Answer

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