Question

A loud band plays a concert late at night in a neighborhood park. The noise produced by the band that keeps the neighbors not attending the concert awake is only a private cost. only an external cost. both a private cost and an external cost. neither a private cost nor an external cost. a private benefit because the neighbors get to hear the band.

Answer 1

Answer:

only external cost

Explanation:

An external cost is the cost incurred by an individual, firm or community as a result of an economic transaction which they are not directly involved in. External costs, also called 'spillovers' and 'third party costs' can arise from both production and consumption.

Answer 2

Answer:

Only an external cost.

Explanation:

This would be an example of an external cost. An external cost is a cost that is incurred by an individual or a community due to a transaction that they were not actually involved in. In this example, the neighbors are kept awake by the concert, even though they did not purchase tickets or benefitted from the organizing of the concert in any way. These costs are also known as "spillovers."