Question

If the costs of externalities like air pollution, ground water contamination and depletion, soil erosion, and nuclear waste disposal are borne by parties who are not involved in the exchange between buyer and seller, the exchange price does not represent an equilibrium between true costs and benefits.a. Trueb. False

Answer 1

Answer: False.

Explanation: This presumption is false because although it is not up to the parties to maintain what is air pollution among other things that have to do with the environment, they also affect the good purchased or the value of things, for which actions must be taken to Although these environmental factors do not affect or counteract them in any way, for example, companies tend to counteract pollution by recycling and this is their way of caring for the environment, because with these recycling trees can be planted or other goods that improve environmental conditions can be made.