Suppose That a Steel Factory Emits a Certain Amount of Air

question 153

Multiple Choice

Suppose that a steel factory emits a certain amount of air pollution.If this market is NOT required to internalize this externality,what will happen

• A)The supply curve would adequately reflect the marginal social cost of production.
• B)Consumers will be required to pay a higher price for steel than they would have if the externality were internalized.
• C)The market equilibrium would not be the socially optimal quantity.
• D)Producers will produce less steel than they otherwise would have if the externality were internalized.

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Definitions:

Subsidiaries

Companies that are owned or controlled by another larger parent company but operate with some degree of autonomy.

Culture

The shared beliefs, values, norms, and practices that define a group of people or society, shaping their behaviors and understanding of the world.

Actual Behavior

The observable actions or responses of an individual or group in real-life situations, as opposed to theoretical or intended behavior.

High-Context Countries

Cultures where communication relies heavily on contextual elements like non-verbal cues and the surrounding environment, contrasting with low-context cultures that depend more on explicit verbal information.