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Figure 11-1 Shows the Marginal Internal Cost [C1],the Marginal Total

Question 9

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Figure 11-1 shows the marginal internal cost [C1],the marginal total cost [C2] of producing a good,and the demand curve for the good [D].
Figure 11-1 shows the marginal internal cost [C<sub>1</sub>],the marginal total cost [C<sub>2</sub>] of producing a good,and the demand curve for the good [D].    -When a chemical firm is required to internalize the external cost of pollution from producing chemicals: A) the price of the chemical produced will increase. B) both the quantity produced of the chemical and its price will fall. C) the quantity produced of the chemical will increase. D) the price will remain the same but producer profits will increase. E) the quantity produced of the chemical will remain the same but the price will increase.
-When a chemical firm is required to internalize the external cost of pollution from producing chemicals:


A) the price of the chemical produced will increase.
B) both the quantity produced of the chemical and its price will fall.
C) the quantity produced of the chemical will increase.
D) the price will remain the same but producer profits will increase.
E) the quantity produced of the chemical will remain the same but the price will increase.

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