Question

Give example of negative externality and explain how it is reciprocal in nature. please be specific

Give example of negative externality and explain how it is reciprocal in nature. please be specific

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Answer #1

Example for negative externality wastewater discharge into fresh water source. It can be mentioned that it is reciprocal in nature because of the fact that if you discharge waste water then the water gets contaminated and slowly the whole river gets contaminated and the company which uses freshwater pulls out water from the the water source in which it already has disposed the waste water as a result of which the collected water wouldn't be fresh as before because wastewater has already been discharhed and this can lead to negative effects in terms of cost and output for the company and in this way negative externality has a reciprocal effect in nature.

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