Pollution Is Considered an External Cost Because

Multiple Choice

Pollution is considered an external cost because:

A) it has a harmful effect borne only by people who purchased the product that caused it.
B) its cost to the environment is not reflected in the price of the product that produces it.
C) it has a significant impact on the consumer's decision to buy the product that causes it.
D) it is a hidden cost that would produce increased demand if the consumer were aware of it.
E) it is an advertised cost that may affect consumer demand for a given product.