If Firms Have to Account for External Costs of Production

question 235

Multiple Choice

If firms have to account for external costs of production, then they will ________ compared with what they would do if they did not have to account for the external costs.

• A) underproduce and underprice
• B) underproduce and overprice
• C) overproduce and underprice
• D) overproduce and overprice

---

Definitions:

Navigation Pane

A user interface component that allows users to easily move between different sections or levels of information within an application or document.

Notes Pane

A section in presentation software that allows users to add notes to their slides, intended for the presenter's reference.

Contact Record

An entry in a database or software application that contains information about an individual or organization, such as name, address, and phone numbers.

Lifetime List

A compilation or record of items, achievements, or events over a person's lifetime.