Asked by Osvaldo Munoz on Apr 26, 2024
Verified
The social cost of pollution includes the private costs of the producers plus the costs to those bystanders adversely affected by the pollution.
Social Cost
The total cost to society as a whole, including both the private costs borne by individuals and the external costs to others not involved in the transaction.
Private Costs
The costs that are incurred by an individual or a company when producing goods or services.
Bystanders
Individuals who are present at an event or incident but do not take part in it, often discussed in the context of emergency situations or accidents.
- Develop an understanding of externalities and their significance in market efficiency.
- Recognize the social costs associated with pollution as part of negative externalities.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
True
Explanation :
The social cost of pollution encompasses both the private costs incurred by producers (such as production and mitigation expenses) and the external costs borne by third parties or the public, who are adversely affected by the pollution but are not directly involved in the economic transaction.
Learning Objectives
- Develop an understanding of externalities and their significance in market efficiency.
- Recognize the social costs associated with pollution as part of negative externalities.