There is often litter along highways but rarely in people's yards. Which of the following statements help explain this observation?

a. Littering on the highway generates a positive externality.
b. The private cost of littering on the highway is low.
c. The private cost of littering on your own yard exceeds the social cost.

Respuesta :

Answer:

The answer is A and C

Explanation:

Solution

Social costs refers to the total cost of an activity incurred by society.

Private costs are direct costs incurred by an individual

Frequently there is liter along the high ways but rarely in people's yards because  the social cost of littering is more than private cost. since the society must bear the negative externality, the social cost is more and the private cost is less.

The private cost is higher when one liters on his own yard as the cost is only borne or carried by the owner and not the society.