Asked by
Diamond Smith
on Oct 26, 2024Verified
If a good that involves external costs is priced to take these costs into account,then its price will likely:
A) fall,and output will likely rise.
B) rise,and output will likely fall.
C) not change,but output will likely fall.
D) rise,but output will likely stay the same.
External Costs
Costs that are not borne by the parties to a transaction but are imposed on others, such as pollution affecting non-participants.
Output
The amount of goods or services produced by a company, industry, or economy in a given period.
- Evaluate the financial repercussions of pollution by conducting a cost-benefit assessment.
- Project the outcome of external costs on the effectiveness of markets.
Verified Answer
TH
Learning Objectives
- Evaluate the financial repercussions of pollution by conducting a cost-benefit assessment.
- Project the outcome of external costs on the effectiveness of markets.
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