Multiple choice general knowledge

Pollution cause by a factory comes under which of the following category?

  1. Fixed cost

  2. Social Cost

  3. Variable Cost

  4. Both A and B
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Pollution caused by a factory is a negative externality that imposes costs on society, known as social cost. Social cost refers to the total cost to society of an economic activity, including both private costs borne by the producer and external costs borne by third parties. Fixed and variable costs are internal to the firm's accounting.

Keep practicing — related questions