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

Question

Quizplus · Accepted Answer

If companies had to pay the social cost of production, it would increase their production costs, which would lead to a decrease in their supply at any given price. This is because the marginal cost of production would increase, leading to lower profits. Therefore, the correct answer is B - less at any given price.

If Companies That Were Creating Pollution Had to Pay the Social