Suppose the production of a good results in negative externalities. If all costs are taken into account, then
A)output will not occur at the socially optimal level.
B)the price of the product will be higher than if all costs are not taken into account.
C)more output will be produced than if all costs are not taken into account.
D)the price of the product will be the same as it would be if all costs are not taken into account.

Question

Quizplus · Accepted Answer

The Answer of Suppose the production of a good results in negative externalities. If all costs are taken into account, then
A)output will not occur at the socially optimal level.
B)the price of the product will be higher than if all costs are not taken into account.
C)more output will be produced than if all costs are not taken into account.
D)the price of the product will be the same as it would be if all costs are not taken into account.

Suppose the Production of a Good Results in Negative Externalities