Multiple Choice
Which of the following statements about internalising a negative production externality is LEAST correct?
A) internalising a negative production externality will cause the supply curve for the good to shift to the left
B) internalising a negative production externality will cause an industry to decrease the quantity it supplies to the market and increase the price of the good produced
C) internalising a negative production externality will cause an industry to increase the quantity it supplies to the market and decrease the price of the good produced
D) internalising a negative production externality will cause an industry to move closer to the socially optimal price and quantity of the good
Correct Answer:
Verified
Correct Answer:
Verified
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