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When a Chemical Firm Is Required to Internalize the External

Question 16

Multiple Choice

When a chemical firm is required to internalize the external cost of pollution:


A) the price of the chemical produced will increase.
B) both the quantity produced and price will fall.
C) the quantity produced will increase.
D) both the price and the producer's profit will increase.
E) the quantity will remain the same but the price will increase.

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