What Does the Phrase "Internalizing an External Cost" Mean

question 253

Multiple Choice

What does the phrase "internalizing an external cost" mean?

• A)limiting the extent to which domestic firms can outsource production
• B)prohibiting economic activities that create externalities
• C)forcing producers to factor into their production costs the cost of the externalities created in the production of their output
• D)finding a way to address cross-border pollution

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Definitions:

Dependent Variable

In research, the variable that is being tested and measured, which is expected to change due to different conditions.

Independent Variables

Independent variables are factors that are manipulated or changed in an experiment to observe their effect on dependent variables.

Optimization Analysis

The process of making something as effective or functional as possible, often through the use of mathematical models to determine the best solution.

CRM Indicators

Metrics or signals used in Customer Relationship Management to track performance, customer satisfaction, loyalty, and profitability.