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Late-night road construction begins on a new bridge. As a consequence, traffic is rerouted past your house while the construction takes place. Choose one: A. positive externality B. negative externality

User Pdinklag
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Answer:

B. negative externality

Step-by-step explanation:

As it is late-night the sound of the traffict will bother to sleep for me and the entire area. This cost is not considered when performing the financial decistion but it is there as the utiliy from the conumer in that area decrease as a result of the labor in the highway to steer traffic into here.

As a result of these externality the social optimall decreases for the time the road construction end.

User Renatopp
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