The negative externality that can occur when a company builds a new offshore oil platform is water pollution. This refers to the environmental impact that may affect marine ecosystems and water quality as a result of the oil drilling and extraction process. The other options, such as increased supply of oil, lower oil prices, and new jobs, are not negative externalities; they can be considered positive economic impacts.
Which of the following is a negative externality that can occur when a company builds a new offshore oil platform?
increased supply of oil
lower oil prices
water pollution
new jobs
1 answer