External costs occur because
A) Private costs do not reflect the full costs to society.
B) Government failure increases costs for the firm.
C) All costs are absorbed by the firm.
D) Firms make a choice other than the most cost-efficient production method. External cost is a cost of a market incurred by a third party.
Correct Answer:
Verified
Q15: Thermal pollution is brought about by the
Q16: Which of the following is assumed to
Q17: Assigning values to environmental damage is relatively
A)
Q18: The Environmental Protection Agency estimates that the
Q19: Requiring that a firm engage in pollution
Q23: External costs are
A) Domestic economic impacts of
Q25: The market will overproduce goods that have
Q28: If the social costs of an economic
Q32: When private and social costs are equal,
A)Market
Q40: An external cost is borne by
A)The producer
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