If Firms Have to Account for External Costs of Production

question 270

Multiple Choice

If firms have to account for external costs of production, then marginal social cost

• A) equals marginal cost.
• B) is less than marginal cost.
• C) is greater than marginal cost.
• D) is zero.

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Definitions:

Need for Self-Determination

Refers to the fundamental drive of individuals to control their own actions and decisions, seeking autonomy and self-regulation in their behavior.

Need for Purposefulness

Refers to the intrinsic human motivation to have a sense of meaning and intention in one's actions and life endeavors.

Intrinsically Motivated

Being driven to act or perform tasks due to inherent satisfaction or interest in the task itself, rather than external rewards or pressures.

Intrinsic Motivation

The drive to perform an activity for its inherent satisfaction rather than for some separable consequence or reward.