Multiple Choice
Which of the following would be classified as an external cost?
A) As more firms began hiring computer programmers, the salaries of computer programmers increased and therefore the firm's cost of production increased.
B) You eat too much pizza and end up with a stomach ache.
C) You are not able to study at night because there is so much noise coming from the dorm room next to yours.
D) When you purchase a prescription drug you are not made fully aware of all the possible side effects that may result from taking the drug.
Correct Answer:
Verified
Correct Answer:
Verified
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