Which of the Following Is a Benefit of Internalizing a Negative

question 131

Multiple Choice

Which of the following is a benefit of internalizing a negative externality?

• A) All pollution is eliminated.
• B) More output is produced.
• C) External costs are taken into account in the market.
• D) The good is sold for a lower price.
• E) Output increases and prices are lower.

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Definitions:

Franchising Revenue Model

Earning revenue by selling franchises of an existing business to allow another party to trade under the name of that business.

Existing Business

An enterprise that is currently operational and has gone past the startup phase, often with established customers, revenue streams, and market presence.

Trade

The exchange of goods or services between parties, which can be within or across borders.

Intermediation Revenue

Income generated by serving as an intermediary in transactions between two or more parties, such as brokerage fees or commissions.