APES QOD February 14

Which of the following is an example of an external cost? (2010 Exam)

A. Individuals pay for medical treatment of lung disease aggravated by pollution from a coal-fired power plant.
B. A gas station goes out of business when gasoline prices go so high that drivers drastically decrease their use of gasoline.
C. A fish-packing company pays unemployment compensation to workers displaced by automation.
D. A company that manufactures x-ray machines triples its profits when a new law mandates increased airport security.
E. A landfill owner buys more land to increase the size and profitability of a landfill.

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