firm A firm B firm C firm D

External costs $ 0 ___$__ 175 ___$__

privet costs 400 250 175 200

social costs ______ 350 ___$__ 250

Table 28.2 For which firm are all costs internalized in Table 28.2?

Question

	firm A	firm B	firm C	firm D
External costs	$ 0	___$__	175	___$__
privet costs	400	250	175	200
social costs	______	350	___$__	250

Table 28.2 For which firm are all costs internalized in Table 28.2?

Quizplus · Accepted Answer

In FirmA, all costs are internalized because it is a vertically integrated firm that owns every stage of production. As a result, the costs of intermediate goods and services are reflected in the firm's production costs. In contrast, the other firms (B, C, and D) all rely on external suppliers for some of their inputs, which means that some costs are not internalized.