Question
Which of the following are most likely in the nature of nonmarket costs or extramarket costs...
Which of the following are most likely in the nature of nonmarket costs or extramarket costs of livestock (cattle) production in Georgia?
a. farm labor costs
b. costs of herbicides (e.g., Roundup) used to kill weeds in cattle pastures
c. water quality degradation caused by cattle manure washing into streams and rivers
d. a and c only
e. a, b, and c
Answers
Ans. c. water quality degradation caused by cattle manure washing into streams and rivers
Water quality degradation is an example of negative externality.
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