When an External Cost Associated with the Production of Some

question 30

Multiple Choice

When an external cost associated with the production of some good has been internalized,it means that

• A)the opportunity cost of production is passed on to the consumer.
• B)the private cost of production is borne by the producer.
• C)the external costs are incorporated into private decision making.
• D)the consumer is bearing the net social benefits imposed by the producer.
• E)the firm is ignoring social costs.

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Definitions:

Basic Substance

A fundamental material or compound that is essential for a particular biological function or structure; often refers to simple, key molecules in biochemistry.

Amino Acids

Organic compounds that serve as the building blocks for proteins, essential to numerous processes in living organisms.

Triglycerides

A type of fat (lipid) found in your blood, made up of a glycerol molecule attached to three fatty acids, used by the body for energy or stored as fat.

Phospholipids

A class of lipids that are a major component of all cell membranes; they form bilayers that function as barriers to ions and molecules.