Economics 9708 · AS & A Level · 7.4

7.4 — practice question

Some multinational oil companies that extract oil in developing countries are now obliged to put right the environmental harm they cause. Which option most accurately describes the total costs faced by the oil companies in these circumstances?

  • Aexternal costs
  • Bprivate costs plus external costs
  • Csocial costs plus external costs
  • Dsocial costs plus private costs

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