Solved

When External Costs Result from the Production of a Good

Question 59

Multiple Choice

When external costs result from the production of a good,


A) Producers have an incentive to produce too little.
B) Consumers have an incentive to consume too little.
C) Both producers and consumers have an incentive to produce and consume too much.
D) Producers and consumers are not affecteD.If a product yields external costs,the social demand is less than the market demand.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents