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Sir i have some doubts…kindly confirm my understanding:
1) if a company perform activities which leads to air pollution but is not charged for it….it will be external cost…but if it is penalised it will be internal cost??So internal failure costs are costs incurred from performing activities that have produced contaminants and waste that have “not been discharged” into the environment. Happen within the organisation. So a spillage inside a factory.
Environmental external failure costs are costs incurred on activities performed” after discharging waste” into the environment. Outside the organisation.
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