When a negative externality is internalized,efficiency increases by shifting the:
A)external cost from those not involved in the market to those involved.
B)external cost from those involved in the market to those not involved.
C)private cost from those not involved in the market to those involved.
D)social cost from those not involved in the market to those involved.

Question

Quizplus · Accepted Answer

When a negative externality is internalized, those involved in the market bear the external costs, leading to more efficient market outcomes by aligning private costs with social costs.

When a Negative Externality Is Internalized,efficiency Increases by Shifting The