As noted in Chapter 14, the exhaust and fly ash from the burning of coal releases many toxic chemicals harmful to life, including humans. For example, mercury is released into the atmosphere and is concentrated in animal tissues, leading to serious health problems such as neurological disorders. These indirect costs associated with the use of coal best represent __________.
economies of scale limited consumer knowledge and understanding externalized costs the challenges of unfamiliar technologies
The indirect costs associated with the use of coal, such as the release of toxic chemicals like mercury and the resulting health problems, best represent externalized costs. Externalized costs are those costs that are not reflected in the market price of a product or service and are instead borne by society or the environment.