Question

suppose a company that produces cleaning supplies also pollutes the air. This pollution is a(n) _____ of the production process. A.) production cost B.) externality C.) tariff

Answer 1

B.) Externality because it is a side-effect of the production process.

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Answer 2

The pollution that a company that produces cleaning supplies produce is an externality of the production process. Correct answer: B The term production externality denotes the side effect from an industrial operation and are usually unintended. The impact of production externalities can be positive or negative or a combination of both.