Question

what is a negative externality? (1 point) negative externalities occur when the social cost of a good or service is higher than the private cost. negative externalities are goods or services that are subject to the free - rider problem negative externalities are goods or services that one consumer can limit another consumer’s use of. negative externalities occur when the social cost of a good or service is lower than the private cost.

Explanation:

Negative externalities arise when the production or consumption of a good or service imposes costs on third - parties not involved in the transaction, making the social cost (private cost + external cost) higher than the private cost.

Answer:

Negative externalities occur when the social cost of a good or service is higher than the private cost.