Question

m3 l1: externalities quiz economics (fa25) wa 1 / economics / module 3: public and private sectors 5 a factory that dumps waste into a towns water supply is an example of a ____ externality real positive negative none of the above

Explanation:

A negative externality occurs when the actions of a producer or consumer impose costs on third - parties. A factory dumping waste into a town's water supply harms the town's residents who are third - parties, imposing a cost on them in terms of health risks and water treatment costs.

Answer:

C. negative