If companies that were creating pollution had to pay the social cost of production,they would want to supply:
A)less at any given price.
B)more at any given price.
C)the same amount at the equilibrium price.
D)the same amount at any given price.

Question

Quizplus · Accepted Answer

When companies have to pay the social cost of production, it increases the cost of production, which reduces the profit margin for the company. This, in turn, could decrease their supply at any given price as they will not want to produce as much due to the increased costs associated with pollution. Therefore, choice A is the correct answer.

If Companies That Were Creating Pollution Had to Pay the Social