Firms that are involved in more than one type of business could be evidence of an attempt to
A)increase private profit at the expense of consumers.
B)internalize some forms of positive externalities.
C)reduce the impact of government regulations on their business.
D)increase the private marginal cost of production.

Question

Quizplus · Accepted Answer

Firms involved in multiple types of businesses may be attempting to internalize positive externalities, such as using the profits from one business to invest in another business with complementary benefits. This can lead to overall efficiency and potential benefits for consumers. The other options are not necessarily true or logical explanations for why a firm would engage in multiple businesses.

Firms That Are Involved in More Than One Type of Business