If companies that are causing pollution were forced 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 only.
D)the same amount at any given price.

Question

Quizplus · Accepted Answer

If companies were forced to pay the social cost of production, their production costs would increase. This would make producing goods less profitable at any given price, leading them to supply less.

If Companies That Are Causing Pollution Were Forced to Pay