Which of the Following Is Assumed to Be the Most

question 117

Multiple Choice

Which of the following is assumed to be the most important motivation for producers?

• A)The desire to minimize external costs.
• B)The desire to maximize economic profits.
• C)The desire to minimize social costs above private costs.

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Definitions:

Marginal Benefits

The additional satisfaction or utility a consumer receives from consuming an additional unit of a good or service.

Pollution Emissions

The release of pollutants into the environment, often as a byproduct of industrial operations, transportation, and other human activities, contributing to environmental degradation.

External Costs

Costs that are not borne by the parties involved in an economic transaction but are instead imposed on others or society.

Government Activities

Actions and operations conducted by the government including lawmaking, regulation, and public services.