Solved

When Producers Operate in a Market Characterized by Negative Externalities,what

Question 156

Multiple Choice

When producers operate in a market characterized by negative externalities,what will a tax do that forces them to internalize the externality


A) It will give sellers an economic incentive to account for the external effects of their actions.
B) It will have an offsetting effect that reduces the producers' private production costs.
C) It will increase the amount of the commodity exchanged in market equilibrium.
D) It will dictate to the producer how much is an acceptable level of the negative externality

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions