Question

What are external costs

Answer 1

External costs are costs imposed upon a third party when goods and services are produced and consumed. Goods and services with external costs are effectively being subsidised by society-at-large which ends up paying them

Step-by-step explanation:

Answer 2

External cost refers to the variations that are presented in the prices in the market that are governed by supply and demand.

Step-by-step explanation:

Examples of external costs are as follows:

a) Suppliers and suppliers: Those who supply the raw material, packaging material, etc. It can be both product and service, but in most cases these costs are reflected in the product.

b) Departments within an organization: These are cases where products are in process, where a department begins a part of the process or where a service is received to complete the production process.