Hello Sir, I hope you're having a great day!
The following statement is said to be true:
''Externalities do not affect the consumer of the product that causes them''
My doubt is, for instance pollution as an externality, If im using a car that emits toxic gases, then ofc I'm also being affected by the environmental pollution as I live in the same place, yeah? and also the manufacturer is being affected so? how is the above statement TRUE.
The answer in the kit says:Externalities do not affect the producer or consumer of
the product but affect other members of society.
Kindly help me understand....
Ask the Tutor ACCA FM
Externalities - Arkwright co. (Kap kit)
5y ago#1I do not have the Kaplan Kit (only the BPP Revision Kit).
However externalities are factors that affect the general population. The producer and consumer are affected, but they are affected as members of the general population - it is not that they are directly affected just because they are the producer or because they are the consumer.
Oh ok, thank you so much!!!
5y ago#3You are welcome :-)
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