Your roommate is studying to be a drummer in a rock band. She practices in your apartment every evening for three hours and the noise makes it difficult for you to concentrate. This is an example of:
a. the third-party problem. b. the tragedy of the commons. c. an internal cost. d. the free-rider problem. e. a positive externality.

The correct answer is C. An internal cost

Explanation:

An internal cost is cost the internal struggle that is going on within oneself. Unlike external cost, it is not paid through material things, rather it is paid by internal mental strategies.

This is an example of an internal struggle because the roommate cannot be categorized into a third party, and it is your internal struggle that you cannot focus while there is noise. For some people, noise helps to concentrate.

Therefore, it would be considered as the internal cost that you pay due to your roommate.

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