Some economists argue that if privately owned firms were required to pay the social costs of their pollution, the result would be:
A) each would create less pollution
B) each would lower production to decrease pollution levels
C) their supply curves will represent all of those social costs
D) the price of goods will rise and a and b above

Question

Quizplus · Accepted Answer

If firms pay for social costs, they will reduce pollution and production, and prices will rise to cover these costs.

Some Economists Argue That If Privately Owned Firms Were Required