Question

Arlent Industries is a cement manufacturing company. The fly ash emitted from the factory is polluting the entire neighborhood. Who bears the cost of the health care of the people who suffer from asthma that are living near the factory premises?

the people, as it is a negative externality

the company, as it is a negative externality

the government

the company and the people share the cost

the government and the company share the cost

Answer 1

A

Step-by-step explanation:

:)

Answer 2

In the given situation above, it is most likely that it is the PEOPLE themselves who will bear their cost of health care because it is a negative externality. Those living near the area are considered as third party and they did not incur any benefit or cost to the company. Answer for this is option A.