Evidence of External Costs in the Production of a Product

question 16

Multiple Choice

Evidence of external costs in the production of a product is present if

• A) the price of the product is higher than it should be.
• B) the production cost increases because of an increase in the minimum wage.
• C) non-buyers and/or non-producers of the product experience a loss for which they are not compensated.
• D) buyers refuse to purchase the product.
• E) producers pay all of the costs of producing the good or service.