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Which of These Is an Example of an External Cost

Question 47

Multiple Choice

Which of these is an example of an external cost?


A) an increase in the value of land you own when a nearby development is completed.
B) the costs paid by a company to build an automated factory.
C) decreased property values in a neighbourhood where several houses are burglarized.
D) the higher price you pay when you buy a heavily advertised product.

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