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:

Verified
Correct Answer:
Verified
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