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Give an Example of an External Cost

question 87

Essay

Give an example of an external cost. Explain why markets don't provide the optimal quantity of goods and services that have external costs.


Definitions:

Sustainability Visions

Strategic plans that outline how an organization intends to achieve long-term sustainability goals, including environmental, economic, and social objectives.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, encompassing economic, social, and environmental sustainability.

Renewable Sources

Natural resources that can be replenished over short periods, such as solar, wind, and hydro energy.

Total Energy Production

The overall amount of energy generated by a country or region from various sources like fossil fuels, nuclear, and renewables.

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