Question

Pollution from a factory that produces cleaners is a(n) _____ of the production process.

Answer 1

Answer: Externality

 

Explanation: In simple words, An externality refers to the expense or profit that impacts a foreign power that has not decided to pay the expense or gain.Externalities also arise when the manufacture or use of the personal market balance of a good or service could not reflect the actual expenses or advantages for community of the whole of that goods or services.

Externalities may be either positive or negative. Governments and agencies also take a stand to verbalize externalities, since business-priced activities may absorb all the costs and benefits correlated with commercial agent-to-economic transactions. The most common method to do that is to impose taxes on sources of externality.