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Market failure and externalities

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Question 18

Which of the following is an example of an external cost?

A manufacturing company faces higher electricity bills due to an increase in national energy tariffs.

Residents living near a newly expanded airport suffer from sleep disruption due to increased night-time flights.

A supermarket chain experiences a rise in profits following a successful nationwide advertising campaign.

Nearby commercial apple orchards yield higher harvests due to a neighboring hobbyist's newly installed beehives.

Market failure and externalities Questions

  1. A Level
  2. /Economics
  3. /Market failure and externalities