UK supermarkets can buy some vegetables at a lower price from Kenyan farmers than from UK farmers.
When the environmental damage caused by transporting the vegetables is taken into account, the social costs of UK supermarkets buying Kenyan vegetables is higher than the social costs of buying UK grown ones.
What can be concluded from this information about the buying by UK supermarkets?
1 )
The external benefit of buying vegetables from Kenya is higher than buying them from the UK.
The external cost of buying vegetables from Kenya is higher than buying them from the UK.
3 )
The private cost of buying vegetables from Kenya is higher than buying them from the UK.
4 )
The social cost of buying vegetables from Kenya is lower than buying them from the UK.
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