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Question -

Explain how the opportunity costs of negative environmental impact are high.



Answer -

Whenever the lands are extracted at a rapid pace which is greater than its regeneration, the carrying capacity of the environment declines. In such a situation, the environment does not perform at its full function, which will result in crisis. For such a situation there should be new alternatives which are eco-friendly resources in order to avoid crisis in environment. Imbalance in environment brings about diseases which may be air or water borne, which will increase the expenses. The cost of managing diseases and finding alternative resources are the opportunity costs associated with the environment. These cost are high which confirms the statement that opportunity costs of negative environmental impact are high.

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