Which of the following is a benefit of internalizing a negative externality?

Question

Quizplus · Accepted Answer

Internalizing a negative externality means that the cost of the negative impact is borne by the producer, which in turn reduces the quantity produced and moves the market closer to the socially optimal level. This elimination of deadweight loss is the main benefit of internalizing a negative externality. The other choices are not necessarily true, as eliminating all pollution is often not feasible or cost-effective, more output is not necessarily a good thing if it creates more negative externalities, and selling goods for a lower price may not be a benefit for the producer.

Which of the Following Is a Benefit of Internalizing a Negative