When Resource Prices Reflect True Social Costs

question 2

Multiple Choice

When resource prices reflect true social costs

• A) external diseconomies must be present.
• B) profit-maximizing firms will tend to produce socially desirable amounts of output.
• C) firms will not use any air or water in their production processes.
• D) production will cease.
• E) firms realize no net benefits from continued production.

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Definitions:

Eosinophils

A type of white blood cell involved in the body's immune response, particularly known for its role in fighting parasitic infections and its involvement in allergic reactions.

Regulation

Rules or directives made and maintained by an authority to control or govern behavior.

Immune Response

The body's defensive reaction to foreign substances or pathogens, involving immune cells and antibodies.