What does it mean to say that a firm has been made liable?
A) The firm is legally responsible to compensate other parties for damage.
B) The firm has begun to treat any external costs as private costs.
C) The firm has received the property rights to a disputed resource.
D) The firm is required to pay a Pigou tax to the government.

Question

Quizplus · Accepted Answer

When a firm is made liable, it means that it is legally responsible for any damage caused to others. This usually results in the firm having to compensate the affected parties for the damages incurred.

What Does It Mean to Say That a Firm Has