Economics (AS & A Level) · Oct / Nov 2023 · Paper 31 · Question 10
9708Private costs and benefits, externalities and social costs and benefits
Some multinational oil companies extracting oil in developing countries are now required to repair the damage they do to the environment. What best describes the total costs incurred by the oil companies in such circumstances?
- Aexternal costs
- Bprivate costs plus external costs
- Csocial costs plus external costs
- Dsocial costs plus private costs
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Correct answer: B. private costs plus external costs
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