When a driver enters a crowded highway he increases the travel times of all other drivers on the highway. This is an example of a negative externality.

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Najwa Saeed · Accepted Answer

Final Answer : True, Explanation :  A negative externality occurs when an individual or firm's actions cause a cost to be suffered by a third party. In this case, the driver entering a crowded highway slows down traffic for everyone else, thus increasing their travel times, which is a cost not borne by the driver but by other road users.

When a driver enters a crowded highway he increases the travel times of all other drivers on the highway. This is an example of a negative externality.

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