Multiple Choice
What does it mean to say that a firm has been made liable?
A) The firm is legally responsible to compensate other parties for damage.
B) The firm has begun to treat any external costs as private costs.
C) The firm has received the property rights to a disputed resource.
D) The firm is required to pay a Pigou tax to the government.
Correct Answer:
Verified
Correct Answer:
Verified
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