A Firm Dumps Dioxin in a River,thereby Severely Polluting the River.The

question 263

Multiple Choice

A firm dumps dioxin in a river,thereby severely polluting the river.The cost of the water pollution is
i.zero for the firm.
ii.an external cost.
iii.part of the marginal social cost

• A) i only
• B) ii only
• C) iii only
• D) ii and iii
• E) i, ii, and iii

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Definitions:

Transfer of Possessions

The act of moving ownership or control of property or assets from one party to another.

Debtor

An individual or entity that owes a debt or is obligated to make payments to another party, known as the creditor.

Creditor

An individual, organization, or entity that is owed money or other forms of compensation by a debtor.

Res Ipsa Loquitur

“The thing speaks for itself.”